Gartner completes acquisition of META Group

Gartner, Inc., the leading provider of research and analysis on the global information technology industry, announced today that it has completed its previously announced acquisition of META Group, Inc., a premier information technology research and consulting firm.

"The completion of this acquisition represents a significant step for Gartner in our strategy to accelerate growth in our core research business," said Gene Hall, chief executive officer of Gartner. "Today, we significantly increased the depth and breadth of our sales coverage in the vastly underserved market for IT research by welcoming more than 100 highly-trained sales people from META - individuals who know the marketplace and our products, and who already have existing client relationships. As a result of the acquisition, we also now have a greater presence in targeted international markets - including the UK and Germany - where we see significant opportunities for growth, as well as greater coverage in several key industries, including energy and utilities, insurance and government and finally, new organizational roles such as enterprise architecture."

Mr. Hall continued: "We are now squarely focused on quickly seizing the attractive opportunities this transaction has created for us to increase top-line growth as well as achieving significant cost synergies in general and administrative expenses. With the META acquisition now complete, Gartner is a stronger, more broadly based company than ever before, with increased capacity to reach new customers and the ability to provide current users of IT research and analysis with enhanced products and services. We are looking forward to delivering on the promise of this acquisition and to building value for our shareholders."

Under the terms of the transaction, which was announced on December 27, 2004, META Group shareholders will receive $10.00 per share, or approximately $168M in cash. As previously reported, Gartner expects the acquisition and the subsequent integration to be earnings neutral in 2005, exclusive of charges related to the transaction, and will result in increased EBITDA of approximately $20 million in 2006. Gartner is currently assessing the accounting treatment of a potential charge related to the acquisition, which is expected to be taken mostly in Gartner`s second fiscal quarter. The charge is expected to be between $30-$40M, which is in line with previous estimates provided by the Company.