BREAKING NEWS: Gartner Acquires AMR Research

Gartner enters into agreement to acquire AMR Research.Gartner announced today that it has agreed to acquire AMR Research for approximately $64 million. 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 and is recognized for its research focused 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 vast market opportunity for syndicated research. The combination is also expected to drive operational efficiencies and cost savings.

"AMR Research is an excellent strategic fit for Gartner," said Gene Hall, Gartner's chief executive officer. "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."

"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," said Tony Friscia, AMR Research's chief executive officer. "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.