Gartner acquires research rival META

Jan 05, 2005: IT research firm Gartner has reached agreement with META Group to acquire the rival IT research and consulting company for around US$162 million (AU$211.5 million), or US $10.00 (AU$13.06) a share.

The boards of directors of both companies have unanimously approved the agreement. Gartner expects to complete the acquisition, which is subject to regulatory approval, by the second quarter of 2005.

Gartner expects the acquisition to bring valuable additional dimensions to Gartner's 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," announced Gartner in a statement. The combination will also drive operational efficiency given the complementary nature of the two companies.

Gene Hall, Gartner's chief executive officer, said: "Gartner and META Group share complementary business models, which will allow easy integration of META Group's offerings into Gartner's existing service portfolio. 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."

Gayl Doster, co-chairman of the special committee of the board of directors of META Group, said: "Through this acquisition, both META Group and Gartner clients will have access to greater depth and breadth of expertise to help them meet their business goals as efficiently and effectively as possible."

Gartner intends to finance the acquisition through the use of current cash, as well as borrowings under the Company's existing line of credit. It 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.

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