Forrester Research is set to acquire Sirius Decisions for $245m in a deal that will see the B2B advisory firm expand into verticals beyond B2B.
The takeover will see the two business combine their acumen to offer broader access to research and advisory content, data, and tools. According to chief marketing officer Victor Milligan, the revamped offering will see Forrester continue to aid marketers' "change agenda" while its purchase will solve operational, demand generation challenges.
"CMOs and marketing teams now have a broader remit for growth and that’s different from allocating resources to advertising," he said. "As CMOs broaden their outlook for growth both in terms of acquisition and enrichment we do see them making more monies available for these kinds of offerings."
Sirius Decisions will remain a distinct brand within the Forrester Group and no management changes are expected as a result of the acquisition.
With growth in mind, Forrester will take Sirius Decisions’ current B2B offering and map it onto other verticals, such as financial services, retail, healthcare, energy and utilities, as well as into newer markets throughout EMEA and APAC. The platform will also be marketed to executives outside of marketing, sales and product, with professionals IT and ‘customer experience’ earmarked as new clients.
Meanwhile Forrester claims the buyout will approximately double its addressable market in strategy from $20bn to $40bn. Michael Doyle, Forrester’s chief financial officer, expects the deal to add around $100m to the company’s revenue in 2019 on a pro forma basis.
The transaction is expected to close in January 2019.
George Colony, Forrester's chairman and chief executive officer, said: "Today's announcement was driven by our clients. 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.
“The combined value of Forrester's strategic and Sirius Decisions' operational capabilities will help our clients change and grow in tumultuous times."
Rich Eldh, Sirius Decisions' co-founder and co-chief executive officer, added: "Allying with Forrester changes the game for our clients and accelerates our growth across industries, regions, and business functions. Beyond the powerful synergies of our two firms what will make this work is our shared passion for our clients' success."