Technology News

Consulting firm Gartner to purchase CEB for $2.6B

Connecticut-based technology research and consulting firm Gartner has agreed to a deal worth $2.6 billion in cash and stock to purchase Virginia-based CEB, which specializes in human resources and business consulting.

The deal, reported Thursday by The Wall Street Journal, gives CEB shareholders $54 per share, plus 0.22 percent of a share of the new Gartner company, a roughly 25 percent increase on the price of CEB shares, which closed Wednesday at $61.09.

The news site CTPost.com reported the deal also includes Gartner assuming $200 million in CEB debt.

The purchase will enable Gartner, which specializes in IT research and consulting, to branch out into CEB's areas of consulting expertise, including sales, human resources and the financial industry.

Once the deal is completed, CEB shareholders are expected to control about 9 percent of Gartner's stock. The deal is expected to close in early 2017, company officials said.

"We are excited about joining forces with CEB, a world-class company we have long admired. Our highly complementary business models will create the leading global research and advisory company for all major functions in the enterprise," Gartner CEO Gene Hall said in a statement. "We look forward to working with CEB's highly talented teams to leverage our global reach and apply Gartner's proven operational and sales execution capabilities at scale to accelerate growth across CEB's businesses."