Exponent Private Equity’s $400 Million Acquisition of CEB Talent Assessment

Cooley advised Gartner on the deal

Gartner, Inc. (NYSE:IT), the world’s leading research and advisory company, today announced that it has reached a definitive agreement to sell CEB Talent Assessment to Exponent Private Equity, a UK-based private equity firm, for $400 million. The agreement comes at the end of a previously announced process to evaluate strategic alternatives for CEB Talent Assessment, formerly SHL, which was acquired by Gartner as part of the CEB acquisition in 2017. The transaction is expected to close in the first half of 2018 and is subject to customary closing conditions.

CEB Talent Assessment is a leading global provider of talent assessment solutions. CEB Talent Assessment’s best-in-class product portfolio of science-based assessment tools, benchmark data, predictive technologies and consultancy services drive business results by equipping organizations to assess, select, and develop the right people for the right roles.

The purchase price is subject to typical adjustments for, among other things, the working capital of the business. Gartner intends to use the majority of the proceeds to repay debt, and remains committed to reaching its leverage targets in-line with its existing plan. The valuation for the business is approximately 10.5x trailing twelve month EBITDA through December 31, 2017. Gartner expects the divestiture would be about $0.17 dilutive to its 2018 adjusted earnings per share on a full year basis.

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow.

Cooley advised with a team including Robert Sanchez (Picture), Daniel Peale, Joshua Holleman, Mike Faber and Adam Ruttenberg.

Involved fees earner: Robert Sanchez – Cooley LLP; Daniel Peale – Cooley LLP; Josh Holleman – Cooley LLP; Mike Faber – Cooley LLP; Adam Ruttenberg – Cooley LLP;

Law Firms: Cooley LLP;

Clients: Gartner, Inc;

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Author: Ambrogio Visconti