Gartner completes acquisition of Meta Group

NEW DELHI: Gartner, Inc. has announced that it has completed its previously announced acquisition of META Group, Inc., an IT research and consulting firm.






Under the terms of the transaction, which was announced on December 27, 2004, META Group shareholders will receive $10 per share, or approximately $168 million in cash. As previously reported, Gartner expects the acquisition and the subsequent integration to be earnings neutral in 2005, exclusive of charges related to the transaction, and will result in increased EBITDA of approximately $20 million in 2006.





Gartner is currently assessing the accounting treatment of a potential charge related to the acquisition, which is expected to be taken mostly in Gartner's second fiscal quarter. The charge is expected to be between $30 million -$40 million, which is in line with previous estimates provided by the company.





"The completion of this acquisition represents a significant step for Gartner in our strategy to accelerate growth in our core research business," said CEO of Gartner Gene Hall. "Today, we significantly increased the depth and breadth of our sales coverage in the vastly underserved market for IT research by welcoming more than 100 highly-trained sales people from META - individuals who know the marketplace and our products, and who have existing client relationships. As a result of the acquisition, we now have a greater presence in targeted international markets - including the UK and Germany -where we see significant opportunities for growth, as well as greater coverage in several key industries, including energy and utilities," he added.