Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Planned acquisition of Leveraged Commentary & Data

On April 4, 2022, Morningstar announced it had reached an agreement to acquire Leveraged Commentary & Data (LCD), a market leader in news, research, data, insights, and indexes for the leveraged finance market from S&P Global. The purchase price is up to $650.0 million in cash, comprised of $600.0 million at closing, subject to certain adjustments, and a contingent payment of up to $50.0 million six months after closing, upon the achievement of certain conditions related to the transition of LCD customer relationships. The closing of the transaction is subject to customary closing conditions and is expected to occur early in the third quarter of 2022.

In conjunction with the announcement of the pending acquisition of LCD, the Company entered into a financing commitment for up to $1.1 billion to support the transaction. The financing is comprised of a five-year term facility and a revolving credit facility, which will replace the Company's existing Credit Agreement, and will be used to finance a portion of the purchase price and for other general corporate purposes.

Credit Ratings Matter

On April 12, 2022, Morningstar Credit Ratings, LLC (MCR) reached an agreement in principle with the staff of the SEC to settle the civil action filed by the SEC in the United States District Court for the Southern District of New York on February 16, 2021. The proposed settlement would fully resolve this matter on a neither-admit-nor-deny basis and would involve a civil money penalty of $1.15 million. The settlement remains subject to approval by the SEC and the Court. See Note 12 for additional information on the Credit Ratings Matter.

Investment in SmartX Technology Solutions Inc.

On April 22, 2022, the Company completed an investment in SmartX Technology Solutions Inc. (SmartX), a provider of managed accounts and a turnkey asset management platform. The investment was comprised of approximately $25.0 million in cash and the conversion of the $5.0 million principal amount convertible note of SmartX held by the Company, in each case, in exchange for SmartX preferred stock.