21 January 2003 Analyst group Forrester Research has acquired rival Giga Information Group in a surprise deal that values Giga at more than $50 million (€46.9m).

The deal represents the biggest yet consolidation of IT analyst groups, which flourished during the 1990s. It follows the demise of the Hurwitz Group at the tail-end of last year and the merger of Jupiter Communications with Media Matrix in September 2000.

Forrester was founded in 1983 by CEO George Forrester Colony, but expanded fast during the 1990s, arriving in Europe in 1996. Forrester achieved revenues of $159.1 million (€149.3m) in 2001 and is noted for its opinionated, easy to read research.

Colony said that the deal would help expand Forrester’s “coverage and reach”, as well as bring in 900 new clients. Forrester is paying three times Giga’s current moribund market valuation to clinch the deal, which enjoys the support of Giga founder and 17% stockholder Gideon Gartner.

Giga was founded by Gideon Gartner in April 1996. He had earlier set-up Gartner, which is widely regarded as one of the ‘big two’ analyst groups alongside IDC. Gartner revenues in 2002 weighed in at $907.2 million (€851.4m) compared to Giga’s 2001 revenues of $69.8 million (€65.5m). Giga is expected to report a fall of about 10% in revenues for 2002.

The all-cash deal should be completed by the end of February.