Morningstar expands footprint with deal for Canadian financial planning technology

Morningstar Inc. is expanding its business as a technology provider not just to advisers in the U.S., but internationally as well.  

On Tuesday, the investment research firm announced plans to acquire PlanPlus Global, a Canadian financial planning and risk profiling software. The acquisition comes just months after Morningstar said it would buy AdviserLogic, a financial planning software for advisers in Australia.

The company also has built its own financial planning technology, Goal Bridge, for U.S.-based advisers.

Morningstar plans to offer PlanPlus Global’s FinaMetric Profiler as a stand-alone risk profiling tool and sees an opportunity to integrate it with the Morningstar Advisor Workstation in both Canada and the U.S.

Morningstar will also add PlanPlus Global’s financial planning software, ProPlanner, into its platform for advisers in Canada, while still supporting AdviserLogic for advisers in Australia. 

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In a statement, Morningstar Canada president and CEO Scott Mackenzie said the acquisition is an investment toward growing Morningstar’s capabilities in financial planning, which he said is becoming more central to the value advisers deliver.

“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,” Mr. Mackenzie said in the statement. “We look forward to the rich expertise and long-standing relationships PlanPlus Global employees will bring to the Morningstar family."

Morningstar did not disclose financial details. It expects the deal to close in the second quarter. The company was unable to provide additional comment.