In February 2025, we announced that we will be sunsetting Morningstar Office after 20 years and providing a streamlined transition for interested clients to SS&C’s Black Diamond Wealth Platform, which will integrate our new Direct Advisory Suite product and allow advisors to continue using Morningstar data and research. Current advisors on the Black Diamond Wealth Platform will also have the opportunity to integrate with Direct Advisory Suite. The agreement with SS&C Technologies and our decision to retire Morningstar Office mark an important step in our efforts to streamline our Morningstar Wealth offering and to focus on areas where we have the greatest confidence that we can scale without making significant new capital investments.
We anticipate that the retirement of Morningstar Office and the transition of interested clients to Black Diamond will be completed by the end of 2026, with a resulting negative impact on revenue for Morningstar Wealth. We anticipate that the changes will have a positive run-rate impact on Morningstar Wealth adjusted operating income once the transition is complete.
Under our agreement with SS&C, we anticipate receiving a minority share of SS&C’s revenue for Office customers who successfully transition to the Black Diamond Wealth Platform. Morningstar Direct Platform revenues will be positively impacted by the integration of Direct Advisory Suite into the Black Diamond Wealth Platform for those clients and for other SS&C clients who opt to add access to Direct Advisory Suite.