Informa buys Datamonitor (and Ovum, Butler)

14May07

Edit – see link for further analysis

Huge news today in the analyst world.

Informa have just announced they are buying Datamonitor (which of course means they are getting a great package deal as Ovum and Butler – amongst other are also in the bag).

I have discussed previously how Datamonitor’s shrewd purchase of Ovum gave them a massive boost into the blossoming telco arena – however, this acquisition by Informa throws everything open.

In one surprising move Informa are positioning themselves as a credible alternative to Gartner in the analyst world. Their research scale mixed with a good mixture of industry expertise from certain analysts confirms them as a major player.

Commenting on the acquisition, Bernard Cragg, Chairman of Datamonitor, said:

Informa and Datamonitor together make an excellent combination. This is an excellent outcome for our shareholders. Like us, Informa has enjoyed the benefits of a clear strategy executed well, with sustained investment in the product range. It is the right home for Datamonitor. Together the two businesses will be stronger and have greater potential.

More news to follow…

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11 Responses to “Informa buys Datamonitor (and Ovum, Butler)”

  1. This price means that Datamonitor is worth more than Forrester. Let’s see of Informa can pull it off, but at first glance I think they have over-paid.

  2. 2 Anon

    Duncan, you’re wrong thinking of this in tech terms – Datamonitor v Forrester. In my opinion, the mistake is seeing this as a single sector acquisition and (and I’m not assuming this is Duncan’s belief) seeing this in terms of Informa going primarily after, say, Gartner.

    There are wider synergies for Informa because of the size of its customer database as a conference organiser and academic publisher. In terms of Datamonitor’s business units, the best fit for Informa is arguably healthcare, not technology or telco.

    Datamonitor’s other business units (notably energy, but also consumer, automotive and retail) all offer opportunities for Informa to leverage – they still offer plenty of overlaps for Datamonitor alone to leverage amongst itself. But yes, Informa will have to work hard to justify its expenditure.

    [Admission: I work for Datamonitor]

  3. It seems as though the closer comparison is with CMP or IDG, rather than Gartner or Forrester.

    I think it’s interesting to see the renewed attraction of late between research houses and events producers. I think this makes a lot of sense today. Look at the increasing synergies across online media/marketing, events and community. Research can be a valuable and possibly unique component of all three types of business — but really pays off when combined with all three.

    True, Gartner tried this model on its own, and tanked its stock value as a result. Maybe the timing was poor. Or maybe in order to work, the research assets need to be the icing, not the cake.

  4. Excellent comment. I’ll link to it.

  5. My contact at Datamonitor believes that the biggest benefit will be that now they will be one of the “big boys”.
    However, bigger is not always better.
    The question is not only whether Datamonitor is worth the price paid but the real test will be if Informa can rebrand the group to bring more value to their customers. If they want to compete with Gartner, the value is not just about better or more information but whether they can influence the buy side as Gartner does. This is still Gartner’s biggest differentiator and it isn’t about size, it is about brand.

  6. This is certainly an interesting move. And you’re right that it now makes Informa a major industry analyst player.

    I’m not so sure that it creates an immediate rival to Gartner – but there’s definitely potential there if Informa decides to continue investing in its tech research business. It’ll take a few years though or some quick (and big) acquisitions – with the pain they entail.

    Interesting times once more.


  1. 1 ARcade : Informa to buy Datamonitor
  2. 2 James Governor’s Monkchips » links for 2007-05-14
  3. 3 People Over Process » Blog Archive » links for 2007-05-15
  4. 4 Analysis - Informa buys Datamonitor « Technobabble 2.0
  5. 5 Tekrati Weblog

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