A definitive agreement was reached between Forrester Research and SiriusDecisions Inc.
SiriusDecisions will be acquired by Forrester for $245 million to aid in creating a robust platform that guides companies and Chief Marketing Officers (CMO) to drive business growth in this customer oriented era. This acquisition will give way to expansion opportunities across regions and industries.
So as to build customer-oriented strategies, Forrester works in tandem with leaders from the business and technology sectors while SiriusDecisions has a sharp focus on product, marketing, and sales operating optimization.
Together, they create an innovative strategy and operations platform with the aim of helping technology and business leaders make the comprehensive changes that are needed to adapt to this customer-led, distraction-filled market while simultaneously maximizing performance on a daily basis.
SiriusDecisions has annual revenue of $87 million and 1,400 client accounts while Forrester has 3,500. Even though only 278 accounts are overlapping between them, they reckon that they will be able to cross-sell various services to their clients.
According to George F. Colony, Forrester’s chairman and Chief Executive Officer (CEO), the decision to make the acquisition was driven by their clients. They believe that the combined value of Forrester’s strategic capabilities and SiriusDecisions’ operational capabilities will enable their clients to change and grow during these chaotic times.
“Empowered customers and the disruptive power of technology are forcing business and technology leaders to take decisive action and make deep-rooted changes while delivering quarterly results,” Mr. Colony added.
SiriusDecisions’ co-founder and co-CEO, John Neeson, is excited about joining forces with Forrester as he believes it will change the game for their clients and even accelerate growth across regions, industries, and business functions. In line with Mr. Neeson and Mr. Colony, Rich Eldh, SiriusDecisions’ co-founder and co-CEO, had this to say; “Beyond the powerful synergies of our two firms what will make this work is our shared passion for our clients’ success.”
This acquisition has the possibility of a number of opportunities opening, apart from the imminent Forrester expansion.
- Forrester and SiriusDecisions will be able to cross-sell to their client bases that will be able to benefit from a wide-ranging access to research and recommended content, data, and tools.
- SiriusDecisions’ product distribution plans will widen and grow to include EMEA and APAC as they join Forrester’s global sales force and channels.
- Forrester will be able to expand SiriusDecisions’ platform, data, methodologies, and best-practice tools into new ones.
- Forrester is continuously growing and expanding to include industries like financial services, retail, healthcare, energy and utilities and this will expand SiriusDecisions to new vertical markets.
With the SiriusDecisions acquisition underway and the addition of operations, Forrester’s addressable market-in strategy will approximately double from $20 billion to $40 billion. Merging operational expertise to Forrester’s expertise in strategy will only drive in new business; increase renewal rates and enhance the ability to enrich existing contracts with the additional services that will be provided.
Expected to close in January 2019, the transaction is still subject to the approval of customary closing conditions, which include appropriate regulatory filings. The transaction will most probably be funded through a combination of cash in hand and a fully committed debt financing of up to $175 million which will be provided by JPMorgan Chase Bank, N.A. along with a syndicate of other lenders.
Mr. Colony believes that digitally-savvy customers change business rules which create extraordinary opportunities for companies that can adapt while it becomes an existential threat to those who don’t. “The combined company creates a robust platform to help our clients not only navigate these rough waters but thrive in the age of the customer,” he added.
About Forrester Research
Founded in 1983 in New England, Forrester Research is an independent technology and market research and advisory company that provides businesses with technology and business-related consulting services.
Founded in 2000 in Northeastern US, SiriusDecisions has become the leading global B2B research and advisory firm that delivers actionable intelligence, metamorphic frameworks and expert guidance that prepare executives to modernize and uplift marketing, sales, and product performance.