Gartner Group
Gartner agreed to purchaseMETA Group
This combination, though, looks to be full of synergies; for starters, both companies are headquartered in Stamford, Conn. Moreover, both companies provide detailed research and analysis on the information technology marketplace. Both also have consulting arms.
But there is a big difference: Gartner is much bigger. For the first nine months of 2004, META posted revenues of $104.2 million. This compares to Gartner's revenues of $638 million during the same period.
In fact, the sale of META was no surprise. In mid-August, the company announced that Chairman Dale Kutnick had hired Wachovia Securities
While the Gartner-META transaction will not have an impact on 2005, the expectation is that the combined entity will be "meaningfully accretive" afterward.
The IT research marketplace is ripe for consolidation, and Gartner is leading the charge, bulking up and solidifying its dominant position. For 2005, expect the trend to continue, possibly involving Forrester Research
Fool contributor Tom Taulli does not own shares mentioned in this article.