Gartner to buy out META Group for US$162 million
IT research and analysis provider, Gartner, and Meta Group have reached an agreement under which Gartner will acquire META Group in an all-cash transaction valued at US$10.00 per share, or approximately US$162 million, with the boards of directors of both companies having 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.
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 in its 2004 year-end earnings call scheduled for February 3rd, 2005.
Greater depth According to Gene Hall, Gartner's chief executive officer, "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."
Hall expects the transaction to give Gartner 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. Both companies are based in Stamford and share complementary business models, which will allow for easy integration.
For additional information: · Visit Gartner at http://www.gartner.com · Visit META Group at http://www.metagroup.com