Gartner Inc. is frequently cited in news articles about the IT industry for its commentary. Today, it became the news itself after announcing plans to acquire business advisory provider CEB Inc. for $3.3 billion.

Excluding debt, the deal is worth approximately $2.6 billion in cash and stock, representing a 25 percent premium over the last closing price of the firm’s stock. The transaction will buy Gartner a presence in several areas where it has so far been only a minor player, most notably in human resources.

CEB is a major producer of workforce management research that tracks everything from global hiring trends to talent availability in key regions. The firm also provides a range of advisory services designed to help organizations manage their staff more effectively.

CEB offers assistance with everything from finding recruits to implementing new management practices that can improve the productivity of existing workers. Gartner will tap the firm’s expertise to expand upon the technology, supply chain and marketing services that constitute its main revenue source. The research giant said that one of the first orders of business will be making CEB’s primary enterprise-oriented services available for clients in the broader midmarket segment.

With the support of its global sales force, Gartner expects this push will create “double-digit contract value growth” for CEB over the next three years. As for its bottom line, the company said the acquisition will make it possible to save $30 million to $50 million annually starting in 2018 by eliminating certain operational overlaps.

The deal is set to finalize in the second half of 2017 pending customary closing conditions. Gartner shareholders will retain a 91 percent stake in the combined company after the transaction goes through, while CEB’s investors are set to receive the rest.

Image via Stocksnap