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Gartner Closes USD 2.6bn Acquisition of US Talent Management Firm CEB.

M2 EQUITYBITES-April 7, 2017-Gartner Closes USD 2.6bn Acquisition of US Talent Management Firm CEB


7 April 2017 - Connecticut, US-based technology research and advisory company Gartner, Inc. (NYSE: IT) has closed the acquisition of Virginia, US-based talent management company CEB Inc. (NYSE: CEB) for USD 54.00 in cash and 0.2284 shares of Gartner common stock, representing a total transaction value of approximately USD 2.6bn, the company said.

Including Gartner's assumption of approximately USD 0.7bn in CEB net debt, the transaction has a total enterprise value of approximately USD 3.3bn.

The completion of the transaction follows the approval of the merger agreement by CEB stockholders at a special meeting held on 4 April 2017, arrangement of financing, as well as the receipt of all required regulatory approvals.

This transaction is accretive to Gartner's adjusted EPS and is expected to be double-digit percentage accretive in 2018. Boards of directors of both companies have unanimously approved the transaction, which is expected to close in the first half of 2017.

Upon completion of the transaction, Gartner shareholders own approximately 91% of the combined company and CEB shareholders will own approximately 9.0%.

The transaction will be funded through a combination of Gartner cash, capacity under its existing credit facility and new additional debt financing. Gartner and CEB will employ more than 13,000 associates serving clients in more than 100 countries worldwide.

Evercore and Goldman, Sachs and Co. are serving as financial advisors to Gartner, and Wilson Sonsini Goodrich and Rosati is serving as legal counsel.

Centerview Partners LLC acted as lead financial advisor to CEB and Allen and Co LLC also acted as financial advisor. Kirkland and Ellis LLP is serving as legal counsel.

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Publication:M2 EquityBites (EQB)
Date:Apr 7, 2017
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