Saatchi & Saatchi Co Plc Friday won agreement to acquire Gartner Group Inc for $90.3m, $22.50 a share, for an exit multiple of just under 24. The advertising giant also announced a rights issue of redeemable convertible preference shares to raise UKP176.5m to pay for Gartner and for future acquisitions – but none is in immediate prospect. It has irrevocable acceptances from holders of 30.8% of Gartner shares, and agreed to pay $77.4m for the outstanding share capital of Gartner, the balance of the offer to be paid for Gartner options. Terms include $4.4m for a long-term incentive plan for 40 key Gartner employees and up to $2.7m for a performance-related incentive plan. Gideon Gartner and the two executive vice presidents will stay on under a long term agreement. The Stamford, Connecticut company did $3.8m net on $40m turnover in the year to March; Gartner holds 17%.
