Gartner to acquire Meta Group for US$162million

Gartner will acquire smaller research rival META Group in a cash deal worth US$162 million. The boards of directors of both companies have unanimously approved the agreement.

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By  Simon Duddy Published  December 29, 2004

Gartner will acquire smaller research rival META Group in a cash deal worth US$162 million. The boards of directors of both companies have unanimously approved the agreement. In 2003, Gartner generated US$858 million in revenue from 76 locations around the world, while META Group generated US$122 million in revenue from 52 locations. The acquisition of META Group will bring valuable additional dimensions to Gartner's already strong core research capabilities. Moreover, the addition of a sales team from META Group that is already highly conversant in Gartner's product and service offerings will enhance Gartner's ability to grow sales going forward. The combination will also drive operational efficiency given the complementary nature of the two companies. ”Gartner and META Group are both based in Stamford and share complementary business models, which will allow easy integration of META Group's offerings into Gartner's existing service portfolio,” says Gene Hall, Gartner's chief executive officer. “This transaction is an exciting opportunity that will give us increased depth in key sectors, geographies and markets, and an increased ability to seize revenue opportunities with the addition of META Group's well-trained, successful sales force. In sum, the acquisition will make Gartner a stronger company with increased opportunities for growth and greater resources to offer clients,” he adds. Gartner intends to finance the acquisition through the use of current cash, as well as borrowings under the Company's existing line of credit. Gartner does not expect the transaction to have a material impact on its 2005 operating results, excluding charges related to the integration of META Group, but expects it to be meaningfully accretive thereafter. The Company will provide additional information on the financial impact of the transaction, as well as 2005 guidance for Gartner on its 2004 year-end earnings call scheduled for February 3, 2005. The transaction is subject to customary closing conditions, including regulatory approvals, and approval by META Group's stockholders. The transaction is expected to close in the second quarter of 2005.

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