Gartner to Sell CEB Unit as Revenue Rises

US tech consultancy Gartner is selling its CEB Talent Assessment business to UK-based Exponent Private Equity for $400m, just a year after it acquired parent firm CEB in a deal valued at around $2.6bn. The firm has also reported Q4 2017 revenue up sharply to $1.01 billion.

Last October, Gartner said it was exploring potential alternatives for CEB Talent Assessment, explaining that the unit's focus was not aligned with its own. The sale is expected to close in the first half of 2018 and is subject to customary closing conditions. Gartner CEO Gene Hall (pictured) said the sale 'represents an opportunity to bring a renewed focus on the business to better support innovation, product development and long-term growth'.

Total fourth quarter 2017 revenue increased 44% on a reported basis and 42% at constant currency. Excluding CEB, revenue increased 15% on a reported basis and 13% on a constant currency basis; Adjusted revenue was $1.1 billion, net income was $107.3m, and adjusted EBITDA was $220.9m, a 52% increase over fourth quarter 2016.

By business segment, Research revenue for the quarter rose 43% to $692.8m on a reported basis (40% on a foreign exchange neutral basis), or removing the effect of CEB, 19% reported and 17% at constant currency. The Consulting division saw revenue increase 5% to $85.3m on a reported basis / 3% on a foreign exchange neutral basis; revenue for the Events arm rose 22% to $166.5m on a reported basis and 5% on a constant currency basis; and for the 'Talent Assessment & Other' section, revenue was $70.0m.

For the full year, Research revenue climbed 33% to $2.47 billion, Consulting was up 3% to $327.6m, Events rose 26% to $337.9m, and Talent Assessment & Other revenue was $174.6m. Total group revenue for the year was $3.31 billion.

Web site: www.gartner.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.