Gartner Inc., a provider of research and analysis on the global information technology industry, has agreed to acquire AMR Research Inc. for approximately $64 million in cash, subject to certain closing adjustments. With projected full year 2009 revenues of approximately $40 million, AMR Research is a rival research and advisory services firm serving supply chain management and IT professionals. The firm’s research focuses on the intersection of business processes and technology for the supply chain professional.
The acquisition of AMR Research is expected to expand Gartner’s suite of research offerings and also complement its consulting and events businesses. Moreover, the addition of AMR Research’s experienced sales team should enhance Gartner’s ability to further penetrate the market opportunity for syndicated research. The combination is also expected to drive operational efficiencies and cost savings.
Gene Hall, Gartner’s CEO, says he expects the acquisition to give Gartner immediate presence in the supply chain market and the ability to generate substantial synergies by selling AMR Research products to Gartner clients and Gartner products to AMR Research clients. “The addition of AMR Research’s team of approximately 40 research analysts and 45 sales executives should enable us to offer expanded resources to our clients and increase our opportunities for growth, he says.
Gartner intends to finance the acquisition through the use of cash on hand, as well as borrowings under its existing line of credit. The transaction is subject to customary closing conditions and is expected to close by the end of 2009.