Gartner buys rival META Group

IT research giant Gartner said 27 December that it will buy rival research firm META Group for US$162 million in cash and close the deal in the second quarter of 2005.

US-based Gartner had revenue of US$858 million in 2003, almost seven times the US$122 million posted that year by META Group.

"Gartner and META Group share complementary business models, which will allow easy integration of META Group's offerings into Gartner's existing service portfolio," said Gene Hall, Gartner's chief executive officer.

Both firms regularly produce market and technology research reports for subscribing corporate customers.

Gartner intends to come up with the cash by dipping into its own reserves and borrowing against the company's existing line of credit.

While the boards of directors of both companies have unanimously approved the agreement, it will await both regulatory approval and that of META Group stockholders.