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Gartner Buys Best Practice and Talent Insight Firm CEB

January 5 2017

Technology research and advisory company Gartner has agreed to acquire best practice and talent management insights firm CEB, in a cash and stock transaction valued at around $2.6bn.

Gene HallGartner will also inherit c.$0.7bn in CEB net debt, giving the deal a total enterprise value of c. $3.3bn. The total consideration of $77.25 per share represents a premium of around 31% versus the volume weighted average closing stock price of CEB over the past 30 days. The transaction will be funded by a Gartner share issue, existing cash, an existing credit facility and new additional debt financing.

The deal has been unanimously approved by the Boards of Directors of both companies and is expected to close in the first half of this year. On completion, Gartner shareholders will own around 91% of the combined company, which will employ more than 13,000 associates. Combined revenues for the two firms for the last 12 months ended September 30th were c.$3.3bn, and EBITDA around $693m.

CEB defines its service as 'equipping leaders at more than 10,000 companies with the intelligence to effectively manage talent, customers, and operations'. Gartner Chief Executive Gene Hall (pictured) says the combination 'will create the leading global research and advisory company for all major functions in the enterprise'. Gartner will introduce its syndicated research and advisory services to CEB's clients in a broad range of functional areas that extend beyond its existing IT, Marketing and Supply Chain roles; and roll out CEB's best practice and talent management insights to its own clients worldwide.

Tom Monahan, Chairman and Chief Executive of CEB, comments: 'We have long admired Gartner for its impact on clients and track record of growth... The combined company will have unmatched insight into technology, talent and the other drivers of corporate performance. It will also have deep reach into a massive, immediately addressable market with clear need for our support across a range of functional areas'.

Hall says the two firms are 'well-aligned from a culture, talent and business model perspective', which will support 'a seamless integration' once the deal is closed.

The transaction is subject to shareholder and regulatory approvals, as well as the satisfaction of customary closing conditions.

Web sites are at www.cebglobal.com and www.gartner.com .

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

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