Gartner buys research rival META for $162m

Reg pegs deal success at 171 per cent

By Ashlee Vance in Chicago • Get more from this author

Posted in Financial News, 28th December 2004 22:53 GMT

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Research firm Gartner has agreed to shell out $162m to buy smaller rival META Group.

Both companies' boards have already approved the all-cash deal. Gartner will pay for the deal using existing funds and by taking loans. The two companies are based in Stamford, Connecticut and have strong brands in the IT analyst firm sector.

Last year, Gartner pulled in $858m in revenue, while META brought in $122m. The deal is expected to close in the second quarter of 2005, pending standard approvals.

"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," said Gartner's CEO Gene Hall. "In sum, the acquisition will make Gartner a stronger company with increased opportunities for growth and greater resources to offer clients."

The Register gives this merger a 171 per cent chance of success. Both companies enjoy "visionary" status in our patented Magic Triangle analysis system. We believe the combined company will post revenue of $3.7bn in 2012 but are willing to lower this forecast if IDC overnights a check.

Gartner, META and IDC all face competitive pressures and are subject to fluctuations in IT spending. More relevant information will cost you $795, but the information does not come with a relevance or pertinence guarantee. That's $695 extra and still questionable. ®

*The Register audits its forecasts every 25 years for accuracy and will note wild inaccuracies at the time of such audits.