Gartner to Acquire CEB for $2.6 billion in Cash and Stock Transaction
On January 5th, Gartner, Inc. (NYSE: IT), the world’s leading information technology research and advisory company announced that it has entered into a definitive agreement with CEB. CEB (NYSE: CEB) operates as a practice insight and technology company, developing innovative solutions to drive corporate performance. On a pro forma basis, the combined company’s last 12 months (LTM) revenues exceeded $3.3 billion, with an EBITDA (earnings before interest, taxes, depreciation and amortization) of $693 million. Some key strategic benefits from the merger include:
- Accelerate CEB’s growth
- Enhance capabilities between both companies
- Align business model fundamentals
- Short and Long-Term financial benefits
- Significantly expands market opportunity
Gartner will acquire the outstanding shares of CEB in a cash and stock transaction valued at $2.6 billion, with Gartner assuming approximately $0.7 billion in CEB debt – for a total enterprise value of approximately $3.3 billion. Gartner plans on issuing 8 million shares of their common stock. Additionally, Gartner plans to fund the cash portion of the transaction with a combination of cash on hand and debt financing. Gartner’s net debt is expected to reach approximately $3.0 billion post transaction closing. The transaction is expected to complete in the first half of 2017.
Read the full press release at www.gartner.com
Below are highlights of additional Merger and Acquisition activity from the last week:
Packaged Foods M&A News:
January 3rd – Smithfield Foods completed their acquisition of Clougherty Packing LLC, the parent company of Farmer John and Saag’s Specialty Meats brands, and PFFJ LLC farm operations from Hormel Foods Corporation.
Read more at www.smithfieldfoods.com
January 6th – Pilgrim’s Corporation (Nasdaq: PPC) announced it has completed its $350 million, all cash transaction, of GNP Company, a leading provider of premium branded chicken products in the Upper Midwest.
Read more at www.pilgrims.com
Environmental and Facilities Services M&A News: On January 4th PSC Industrial Outsourcing, LP (PSC), a leading national provider of industrial cleaning and environmentally sensitive services announced the acquisition of Seal Industries, Inc. (Guardian/Seal Tech), a leading provider of non-process emission management services.
Read more at www.pscnow.com
Data Processing M&A News: Cardtronics plc (Nasdaq: CATM), the world’s largest ATM owner/operator announced on January 6th that it has completed its acquisition of DirectCash Payments Inc. – a leading global ATM services provider. The transaction is valued at approximately $464 million.
Read more at www.cardtronics.com
