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Although it wasn't love at first sight, the $734 million Gartner Group Inc., a technology consulting and advisory company in Stamford, Conn., and Louisville's Tech-, Republic Inc. expect their new marriage to bring a blissful future.
In a deal announced Wednesday, Gartner Group bought 90 percent of TechRepublic for $80 million, leaving the remaining 10 percent of the company with management and employees in stock options.
The acquisition, or courtship, has been in the making since the TechRepublic founders began their search for start-up financing in 1997.
Tom Cottingham, TechRepublic's president and chief executive officer, approached Gartner Group for funding at that time, but the company decline, Cottingham said.
Since that first discussion, officials from both companies have maintained contact.
This year, when TechRepublic was seeking its third round of funding, Gartner Group officials approached Cottingham with the buyout option, he said.
It was ideal because Gartner Group agreed to let TechRepublic operate independently, and the company still could reap the benefits of being associated with the Gartner Group name, Cottingham said.
"The whole deal made complete sense from every single angle," he said.
Gartner Group, which previously has not had a strong presence on the Internet, will use TechRepublic's flagship product, www.techrepublic.com, to reach hundreds of thousands of information technology professionals that it currently isn't reaching, Cottingham said.
"For Gartner, it's really a window into a whole new audience," said Michael Fleisher, Gartner's president and chief executive officer.
Historically, Gartner's market share has consisted of strategists and senior-level management, Fleisher said. Gartner's clients mainly received advice on technology issues via published reports and personal consulting.
TechRepublic allows Gartner the opportunity to reach hands-on IT professionals, "the people who are actually making technology and the Internet work," he said.
Analyst Stephen Tekirian, who follows Gartner for BT Alex. Brown, said the acquisition will give Gartner "an online platform to launch Gartner's own services and new services.
It is something that Gartner just has not had before. TechRepublic has a following and that will be a real positive for this company."
Techrepublic.com is accessed and reviewed for free and provides information, such as technical tips, trend analysis, and career-management information, from a variety of sources.
The company also has a Web information service, TechProGuild, for...