Gartner enters into agreement to acquire AMR Research Inc. for $64 million
Statement from Tony Friscia, AMR Research, CEO
I am delighted to share the news that AMR Research has reached an agreement to be acquired by Gartner Inc., the world’s leading information technology research and advisory firm. We expect this transaction, which is subject to customary closing conditions, to be completed this month.
Gartner’s goal with this acquisition is to enhance its overall offering by adding AMR Research’s leading supply chain research, consulting, and events portfolio to its global brand. Gartner will invest in AMR Research’s products and services to increase the value we currently provide to all clients and extend our reach globally. The service you receive from AMR Research will not be affected in any way by this acquisition.
AMR Research and Gartner plan to operate separately in "business as usual" mode until January 1, when integration will begin in earnest.
Read more at www.amrresearch.com/Content/View.aspx?compURI=tcm:7-49356
Gartner Inc. (NYSE: IT), said to be the leading provider of research and analysis on the global information technology industry, announced Dec. 1 that it 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 leading research and advisory services firm serving supply chain management and IT professionals. The firm is recognized for its research focused on the intersection of business processes and technology for the supply chain professional, Gartner said.
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 sales team should enhance Gartner’s ability to further penetrate the vast market opportunity for syndicated research; the combination is also expected to drive operational efficiencies and cost savings, Gartner said.
Gene Hall, Gartner’s chief executive officer, said, "AMR Research is an excellent strategic fit for Gartner. The firm is the market leader for research related to supply chain management, which is inextricably linked to IT and has become a central and growing issue for many organizations. We expect the acquisition to give us immediate presence in this 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."
Tony Friscia, AMR Research’s chief executive officer, commented, "Gartner’s scale and worldwide distribution will enable AMR Research to sell its world-class products to a much larger client base than it ever could as an independent company. This transaction is a unique and exciting opportunity for AMR Research."
Gartner intends to finance the acquisition through the use of cash on hand, as well as borrowings under the Company’s existing line of credit. The transaction is subject to customary closing conditions and is expected to close later this month.
Gartner does not expect the acquisition of AMR Research to have a material impact on its 2009 financial results, but does expect it to be significantly accretive to its revenue, earnings and cash flow over time.
Bruce Richardson, of AMR Research , noted in the "First Thing Monday: The Future of Enterprise Apps" email newsletter, "There’s no doubt that employees are in for a fair amount of change. With $1.28B in FY08 sales, Gartner is about 32 times our size. It has more than 650 analysts to our 40, and 1,000 sales reps compared to 45 for us. It has operations in 80 countries, while we’re in the United States and the UK."
" We will be writing to a much larger audience . For example, First Thing Monday has the largest subscription base of all of our publications. Many of the 32,000 subscribers who received the most recent edition get it as a free publication. While we’re proud of that base, Gartner has nearly twice as many paying clients.
" We will have a stronger global reach . While my AMR Research tenure has allowed me to amass nearly 3.4 million American Airlines miles from business travel to six continents, we were never very successful in building a global presence. Although we have global clients, we could never provide them true local support. Gartner, by contrast, has operations everywhere.
" We will be in more verticals . We have a strong presence in discrete and process manufacturing, consumer products, life sciences, and retail, but that’s pretty much it. This will change. For example, as part of our sustainability coverage, I look forward to talking to executives in utilities and public sector about their roles and involvement.
"We will have access to more research assets . Because of our size, we often had a single analyst or two covering an important emerging software or services market. We now have 650 new research peers to stimulate our thinking and challenge our ideas.
" It’s all about the written word . In my first meeting with a Gartner executive a few weeks ago, I asked about metrics for research. He told me that his firm places a strong emphasis on high-quality writing. It was exactly what I hoped he’d say."
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– Edited by Mark T. Hoske, electronic products editor, Manufacturing Business Technology MBT www.mbtmag.com