Morningstar is to acquire financial planning and risk-profiling software firm PlanPlus Global as it expands its financial planning capabilities worldwide.
The firm, based in Canada, had 40 employees who were expected to join Morningstar plus the firm’s leadership team and had been working with Morningstar for a decade.
Morningstar planned to continue to offer the firm’s Finametrica Profiler as a stand-alone risk profiling tool in global markets and its ProPlanner financial planning solution.
Users in Australia would be unaffected by the changes where AdviserLogic, which was acquired by Morningstar last November, would remain the lead offering.
Scott Mackenzie, president and chief executive of Morningstar Canada, said: “With a 30-year track record, PlanPlus Global’s strengths in risk profiling and financial planning have been proven to stand the test of time. These capabilities will only become more important as planning grows more central to the value advisors deliver to clients and as the industry puts more focus on ensuring investment plans are best suited for each client’s unique goals and circumstances”.
Also commenting, Shawn Brayman, founder and chief executive of PlanPlus Global said: “Morningstar has shown a vision and commitment to enable basic goal planning all the way through to advanced planning for high-net-worth-focused advisors. When it comes to finding a large, strategic fintech partner that can help us scale our solutions in the marketplace and enhance the value to our users globally, Morningstar is the perfect fit”.
Financial terms were not disclosed and the transaction was expected to close in the second quarter of 2020.