Members of the press looking for commentary on the acquisition and its impact on the industry analyst market can contact SageCircle at “press [at] sagecircle [dot] com” or 503-636-1500 or 650-274-8309.
IDG owner Patrick McGovern, #305 on Forbes list of the world’s billionaires, acquires Forrester Research, Inc. (Nasdaq: FORR) in a reverse takeover as predicted by SageCircle in Acquisitions continue to remake the analyst landscape – Looking ahead to 2010. See below for an extract of the press release.
The goal of the acquisition is a reverse takeover or reverse merger. A private company takes over a public company so that the acquiring company does not have to go through the expense of an IPO to become publicly held. IDG is owned almost in entirety by billionaire founder-CEO Pat McGovern. McGovern is in his early 70’s so it is not inconceivable that he could be thinking ahead toward retirement and the need to liquidate IDG. The public company acquired as the shell company for this technique would not have to an analyst firm like Forrester or Gartner, just any public company. However, the acquisition of Forrester Research makes perfect sense because not only does it provide McGovern with a public shell company, this move dramatically enhances IDC’s foot print in the enterprise IT advisory space.
Free SageCircle Webinar:
SageCircle will hold a webinar at 6 am, 10 am and 6 pm (all US Pacific Daylight Time) on Friday, April 2nd, to discuss this game changing announcement. You can register at www.SageCircle.com. Please feel free to forward this invitation to your colleagues.
SageCircle Technique:
- For Forrester Research prospects and clients currently negotiating contracts or renewals it makes sense not to execute on any new contracts until additional detail is forthcoming. For prospects and clients of Forrester you have to weigh the potential value of a Forrester contract if the Forrester analysts you are interested in decide to leave the merged firm. In addition, prospects and clients might be able to access these analysts with their existing IDC contacts and not need to commit to additional spending.
- For analyst relations (AR) professionals, this M&A event will impact your analyst lists and outreach plans. Carefully monitor changes to analyst status such as employment and research coverage for both IDC and Forrester analysts and adjust your plans accordingly.
SageCircle clients have received a SageFlash with recommendations for both research contract managers (end user or vendor) and analyst relations. In addition, SageCircle Advisory clients are already scheduling phone inquiries with SageCircle strategists to discuss how this M&A event impacts their plans. If you would like information on how to leverage SageCircle insights and research please contact us at 503-636-1500 or “info [at] sagecircle [dot] com.” Advisory packages start as low as $495 for a two-hour block (click here for more information and to purchase via credit card. We also accept purchase orders).
Bottom Line: This obviously is major gauntlet thrown not only at Gartner, but also Datamonitor/Ovum and the Corporate Executive Board. SageCircle expects to see other acquisitions announced in the next few months as IDC’s competitors scramble to respond to this move. Likely takeover targets include Altimeter Group (disruptive technologies), Horses for Sources (business process outsourcing), and Springboard Research (Asia-Pacific expertise).
Question: AR – How do you perceive this announcement impacting the analyst industry?
— Extract from Press Release —
IDG acquires Forrester Research, announces spin-off of IDC
FRAMINGHAM, MA. – April 1, 2010 – International Data Group (IDG), the world’s leading technology media, events, and research company, today announced that, on April 1, 2010, it has acquired Forrester Research, Inc. (Nasdaq: FORR) for approximately $878 million in cash. Forrester Research is a leading research and advisory services firm that provides pragmatic and forward-thinking advice to global leaders in business and technology. The firm has approximately 947 employees, more than 362 of whom are research professionals. Forrester’s projected 2010 revenues are estimated to be $244 million.
The acquisition of Forrester Research is expected to expand IDC’s product and service offerings, and increase its enterprise IT advisory and research market opportunity. The combination is also expected to drive operational efficiencies and cost savings.
Crawford del Prete, formerly Executive Vice President, Worldwide Research of IDC has been named Chief Executive Officer of the combined IDC/Forrester Research, which will be known as IDC. IDG founder, CEO and principal owner Patrick McGovern will be Chairman of the expanded IDC.
Mr. del Prete pledges to take the battle to Gartner, Inc. (NYSE: IT) for the hearts, minds and wallets of enterprise IT managers. Said Mr. del Prete: “We will aggressively use social media and communities based on the success of the IDC Insights Community to expand our awareness in the $21 billion market for advice to enterprises on IT strategy and technology. Besides having the industry-leading, worldwide community of analysts and researchers, IDC is committed to creating the most powerful go-to-market machine in the analyst industry. We plan on quadrupling the sales force and investing significantly in brand marketing.”
As part of the integration and rebranding, the Forrester Research brand is being retired. While valuable, this brand would only create confusion and detract from the stronger brand that IDC has been building around the IDC Insights series. The Forrester client groups will now become:
- IDC Enterprise IT Insights
- IDC Marketing Insights
The Forrester IT vendor client group is being added to the rebranded core IDC, now known as:
- IDC Technology Vendor Insights
As part of its marketing push IDC/Forrester has selected TBWA\Media Arts Lab, the ad agency behind Apple’s wildly popular “Get a Mac” TV commercials, to develop a comprehensive campaign to raise the new company’s brand profile.
“We are going to have some fun with the advertising” said Allison Johnson, newly appointed Chief Marketing Officer of IDC and most recently VP of Marketing Communications at Apple. “Something that I learned while working directly with HP’s Carly Fiorina and Apple’s Steve Jobs is the importance of corporate brand equity. The new IDC/Forrester will not only need to educate our markets and the investor community about our company, but crack Gartner’s dominate mindshare driven by signature items like the Magic Quadrant and Gartner Symposium. So stay tuned for a campaign that blends hard hitting messaging within the velvet glove of humor.”
As part of its marketing strategy, IDC is announcing an advertising campaign that will include integrated online-print-TV placements during the 2010 World Cup, NBA playoffs, World Series and 2011 Super Bowl.
After a transition period, Forrester founder, CEO and Chairman George F. Colony will be retiring. Said Mr. McGovern: “George has been a tireless leader of not only Forrester, but also the analyst industry. His insights on the direction of the IT industry has been instrumental in the guiding information technology over the past 28 years.” After his retirement, Mr. Colony will be launching the Colony Institute of Absolute Binary Synthesis, a public policy think tank which will build upon his contacts he has made during his participation at the World Economic Council meetings in Davos.
About International Data Group (IDG)
International Data Group (IDG) is the world’s leading technology media, events, and research company. IDG’s online network includes more than 450 web sites spanning business technology, consumer technology, digital entertainment and video games worldwide. IDG also publishes more than 300 magazines and newspapers. Media brands are in more than 90 countries and include CIO, CSO, Computerworld, GamePro, InfoWorld/TechWorld/TecChannel, ITworld, Macworld, Network World, and PC World. The company’s lead-generation service, IDG Connect, matches technology companies with an audience of engaged, high-quality IT professionals, influencers, and decision makers.
IDG is a leading producer of more than 750 technology-related events including Macworld Conference & Expo, OpenSource World, E3 Expo, DEMO, Storage Networking World, and IDC Directions. IDC, a subsidiary of IDG, is the premier global provider of market intelligence, advisory services, and events. Over 1000 IDC analysts in more than 100 countries provide global, regional, and local expertise on technology and industry opportunities and trends.
About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps business executives, IT professionals, and the investment community to make fact-based decisions on business strategy and technology purchases. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events Company. You can learn more about IDC by visiting www.idc.com [http://www.idc.com].
About Forrester Research
Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 20 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 26 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com.
.
.
Tags: April Fool, April Fool's Day
I had heard rumors that Altimeter was buying Forrester.
Forrester confirms what you just read is an April Fool’s joke!
you knuckleheads
I have to fess up, this got me good this morning…great execution!
What was the point?
LOL. The name of George’s Institute sounds like it promotes the notion that there is either a right answer or a wrong answer to every question. I think this would be a positive change in the economic policy world — let’s abandon all this wishy-washy shades of grey stuff.
Allison Johnson quote is cruel ;-(
Bruce Tempkin is leaving Forrester?