Morningstar is set to exit its commodities and energy data business in India
Global data and research insights company, the $2 billion Morningstar will soon exit commodities and energy data businesses, according to sources close to the development. The deal is expected to be done in India as most of the employees of these verticals work from here.
Canada-based ZEMA Global Data Corp is likely to be the buyer. The deal will mark ZEMA’s entry into India, the source said.
The deal will be announced by the end of this month in India, the sources said. It was not clear whether the workforce will be retained entirely. As of December-end, Morningstar had 11,334 employees, according to its annual report. Roughly, 40% of these employees are in India.
“Commodities and energy data segment is a smaller part of Morningstar’s overall business. Since most employees in this segment are based out of India, the deal is happening in India,” one of the sources said.
Morningstar reported $2 billion in revenue in 2023, with data and analytics division contributing around 37% to the top line. Its profit before taxes stood at $174.1 million for the year.
The company has clients across various segments of investors and investment service providers including, individual and institutional investors in public and private capital markets, financial advisors and wealth managers, asset managers, retirement plan providers and sponsors, and issuers of fixed-income securities.
Morningstar’s data universe includes 6,400 model portfolios, 25,000 exchange traded funds, 54,500 public companies, 300,000 mutual fund share classes, 25 million ESG-rated securities, and 38 million privately held companies, as per its annual report.