The Twitter underworld is in ebullition this afternoon and the West Coast isn’t yet awake: the consolidation mouvement in the IT Analysis Industrys keeps steamrolling, the latest one to be picked up being AMR Research -by Gartner (NYSE:IT):
@iiar: RT @Gartner_inc: Gartner enters into Agreement to Acquire AMR Research, Inc. http://bit.ly/71BFeq
Nothing on the AMR site yet, just this press release on the Gartner web site, with the following facts:
- Price: $64m
- AMR 2009 revenues: $40 million
- Rationale: it’s complementary as one would expect -“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 vast market opportunity for syndicated research. The combination is also expected to drive operational efficiencies and cost savings.”
- Product fit: “[AMR] 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.”
- Financials: the transaction is expected to be dilutive to EPS by -$0.11 to -$0.09 FY10 ; accretive to EPS by $0.01 to $0.04 in FY11.
Impact for AR Managers:
- Positive: this will broaden the Gartner portfolio and help AMR reaching further geographically and deeper into accounts, leveraging Gartner’s infrastructure and sales
- Negative: this will reduce negotiation levers for IT vendors as well as competition in Applications Software IT research
- Collateral impact: a larger Gartner offering may be a threat for Forrester (NASDAQ:FORR), Ovum-Datamonitor and other IT Analysis Firms as well as an opportunity to fulfill the “alternative opinion” and possibly hire seasonned and connected AMR analysts
Tell us what you think!
AR Managers, how do you see this impacting your role?
Gartner competitors, how do you position yourselves on this?
Take our poll:
- from @bfr3nch: Gartner hosting special AR Webinar on AMR Research acquisition on Dec 3rd: http://analystnews.tekrati.com/firmnews/10500/
- Carter posted a great analysis of this event here -a must read.