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Consolidation is continuing in the IT research sector, with word this week that Gartner has entered into an agreement to acquire AMR Research of Boston, Mass.
Gartner of Stamford, Conn. said it had reached an agreement to acquire AMR for about $64 million in cash. AMR, which has projected revenues for 2009 to come in somewhere around $40 million, specializes in IT research. However, it is particularly recognized for its expertise in supply chain management and annually publishes a list of the Top 25 Supply Chains.
Gartner said the acquisition will expand the firm’s suite of research offerings and complement its consulting and events businesses. In addition, it expects to leverage AMR’s sales team to grow its syndicated research business.
“AMR Research is an excellent strategic fit for Gartner,” Chief Executive Gene Hall said in a statement. “The firm is the market leader for research related to supply chain management, which is inextricably linked to IT and has become a central and growing issue for many organizations.
“The addition of AMR Research’s team of approximately 40 research analysts and 45 sales executives should enable us to offer expanded resources to our clients and increase our opportunities for growth.”
Like the sector it covers, the IT research field has undergone a tough year. A number of the research firms have laid off analysts and staff over the past 12 months, and some firms have been gobbled up. Increasingly the market appears to be consolidating around two industry behemoths: Gartner and Forrester Research.
Just over a year ago, Forrester Research announced that it was acquiring Jupiter Research for $23 million in cash. Earlier this week Forrester, which is based in Cambridge, Mass. announced it was acquiring Strategic Oxygen for an undisclosed amount. Strategic Oxygen provides market research insights, which allow marketers to: “Identify which key influencers to approach with their products/services.”
In October, TowerGroup, which specializes in the banking and financial services sector, was acquired by Corporate Executive Board of Washington, D.C. for an undisclosed price. Corporate Executive Board acquired TowerGroup from MasterCard Advisors, a subsidiary of MasterCard International.
While the consolidation provides IT companies with access to research firms with a broader range of services and expertise, it does have negative aspects. With less competition, Gartner and Forrester will have a greater ability to raise rates as the economy improves. Also, you have to wonder whether Gartner and Forrester can maintain the level of expertise provided by specialists like AMR.
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