Gartner sign
Courtesy of Gartner Inc.

IT Research Firm Gartner Is Buying CEB for $2.6 Billion

Jan 05, 2017

IT research and advisory company Gartner Inc said on Thursday it would buy CEB Inc, a provider of business research and analysis, in a cash-and-stock deal valued at $2.6 billion to expand its business services.

The deal will broaden Gartner's research business through the addition of CEB's services, which include research and analysis related to human resources, sales, finance and the law.

Gartner is offering $54 in cash and 0.2284 of its shares for each CEB share. The deal represents a premium of about 25 percent to CEB's Wednesday close.

CEB's shares were up 16.4 percent at $72.05 in premarket trading, below the implied offer price of $77.25 per share. Gartner's shares, which closed at $101.79 on Wednesday, were untraded.

Gartner shareholders will own about 91 percent of the combined company.

CEB, headquartered in Arlington, Virginia, has a 35-day "go-shop" period during which it can solicit alternative proposals.

Stamford, Connecticut based-Gartner said the deal would immediately add to adjusted earnings per share on completion, expected in the first half of 2017, and be "double-digit percentage accretive" to adjusted EPS in 2018.

Evercore and Goldman, Sachs & Co advised Gartner. Centerview Partners LLC was lead adviser to CEB, with Allen & Co LLC also advising.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions