Forrester Research to acquire Giga Information Group

Two technology analysis firms, Forrester Research and Giga Information Group, have entered into an agreement under which Forrester will purchase Giga for $60 million in cash, Forrester said Tuesday.

Both companies provide technology analysis to client firms and media organizations, and both are based in Cambridge, Mass.

Giga’s presence in the government and investor communities made it attractive to Forrester, said Forrester Chairman and CEO George Colony on a conference call Tuesday. Also, Giga sells much of its technology research directly to IT departments and personnel, a strategy which has proven more resilient during the recent economic downturn than the market for IT research among marketing and business strategy executives, he said.

Forrester will make a tender offer of $4.75 per share for all outstanding shares of Giga, it said in a press release. In order for the agreement to go forward, more than half of Giga shareholders must tender their stock. If 90% surrender their stock in exchange for Forrester’s cash offer, the deal will close by the end of February, and Giga will become a wholly owned subsidiary of Forrester, the companies said. If less than 90% but more than 50% of stockholders tender their shares, the transaction will take longer to complete, and require a meeting of Giga’s stockholders to close the deal.

Giga was formed in 1996 by Gideon Gartner, the founder of the Stamford, Connecticut, market research firm Gartner Inc. Gideon Gartner has already agreed to tender his 17% stake in Giga, Forrester said.