January 5, 2010 by USA Post
Burton Group:Information-technology research company Gartner Inc. (IT) has bought Burton Group Inc. for about $56 million, the latest acquisition for the company.
Gartner made the purchase, expected to expand its product and service offerings and increase IT research-market opportunities, Dec. 30. Burton, an IT research and advisory firm that has 41 researchanlysts and 40 sales and client-service employees, comes with projected 2009 revenue of $30 million.
Gartner has typically focused on advising companies’ chief information officers and senior IT executives, while Burton has built its business by advising “front-line IT professionals,” said Gartner Chief Executive Gene Hall.
“Burton Group is a great strategic fit for Gartner and should enable us to offer a more complete solution to every level and functional expert within an IT organization,” Hall said.
Excluding charges related to the deal, Gartner said the acquisition should “moderately” boost per-share earnings this year and increase them “at least” 4 cents to 6 cents in 2011.
Gartner financed the deal through cash on hand and borrowings from its existing credit line. A week before closing the Burton deal, Gartner paid $63 million for another research firm.
Gartner in October said its third-quarter earnings jumped on a tax gain even as revenue fell across its business segments, which include research, consulting and events.
Shares of Gartner closed Monday at $18.70 and were inactive premarket.
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