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Gartner Buys Rival
IT researcher Gartner has announced that it will purchase the META Group for $162m in cash ($10 a share). Both are based in Stamford, CT, USA. Gartner had $858 million in revenue last year and profit of $18 million, while Meta Group turned over $122 million with a loss of $4m.
The deal is expected to close in the second quarter of 2005, although still subject to customary closing conditions, including regulatory approvals, and approval by META Group's stockholders. The merger was backed unanimously by the boards of both companies.
Gartner CEO Gene Hall says the two share complementary business models, which will make the integration easier. 'This transaction 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'. Gartner also said it expects some 'operational efficiency' in the merger, which will be accretive to the company's financials in 2005.
Gartner Group is online at www.gartner.com and META Group at www.metagroup.com
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