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| Silver Lake Partners to Invest in Gartner Through a $300 Million Convertible Subordinated Note | |
| Roger McNamee and Glenn Hutchins to Join Gartner Board of Directors |
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Stamford, Conn. — March 22, 2000 — Gartner Group, Inc. (NYSE: IT and ITB), the world's leading business technology advisor, today announced that technology investment firm Silver Lake Partners, L.P. has agreed to invest $300 million in Gartner. The investment will be in the form of a private subordinated convertible note. Proceeds from the investment will be used to pay down existing senior debt and to fund investment in Gartner's business initiatives.
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Silver Lake Partners, the leading private equity investment partnership focused on technology and related growth industries, has extensive experience investing in and financing the rapid growth of technology companies. The principals of Silver Lake include Jim Davidson, Glenn Hutchins, Dave Roux, and the partners of Integral Capital Partners, whose general partners include Roger McNamee, John Powell, and the partners of Kleiner, Perkins, Caufield & Byers.
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In conjunction with the closing of this investment transaction, Roger McNamee and Glenn Hutchins will join Gartner's board of directors replacing two current board members. These replacements are expected to take place at closing.
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"We are very excited about our new partnership with Silver Lake Partners," commented Michael D. Fleisher, president and CEO of Gartner. "Their industry relationships, capital market expertise, strategic insights and operating experience will enable Gartner to more fully exploit our market opportunities going forward. We look forward to their insight, contribution and guidance as we execute our strategy."
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Manny Fernandez, chairman of Gartner said, "The entire board of directors is very bullish on Gartner's strategy to exploit more aggressively the business opportunities created by the Internet. In particular, the bold moves being made by the management team to bring together Gartner, TechRepublic and Silver Lake Partners, is a true new beginning for Gartner's incredible franchise."
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Roger McNamee, general partner at Integral Capital Partners, commented, "Gartner is a powerhouse in the information technology sector. We believe in their strategy, the company's growth potential and look forward to working with the board, the management team and investors as the company realizes its tremendous market opportunity in its services and e-business segments."
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In a private placement transaction, Silver Lake Partners has agreed to purchase, subject to customary closing conditions, a $300 million five-year convertible subordinate note with a coupon of 6.00 percent. The note will be priced between $14.00 per share and $16.00 per share and is subject to certain adjustments. The note is convertible into IT Series A Stock or cash at the option of Gartner.
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In a separate press release, Gartner announced the acquisition of TechRepublic, Inc. the leading online destination developed exclusively for IT professionals by IT professionals.
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Investor Conference Call Information Institutional investors and analysts are invited to participate in a conference call hosted by Gartner management, to be held at 8:30 A.M. EST on Wednesday, March 22, 2000. The call-in number is 212-676-5185. A replay for the conference call will be available through March 24, 2000 by calling 800-633-8284. Reservation number 14689969 is required to hear the replay. Gartner's investor conference call will also be available via the Internet by accessing Gartner's home page at www.gartner.com. , or www.vcall.com. The Webcast will be available for a limited time. |
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About Silver Lake Partners Silver Lake Partners (SLP) is the leading investment firm focused on private equity buyout and recapitalization investments in the most dynamic sector of the global economy — the technology industries and related growth companies. With $2.3 billion in committed capital, SLP seeks to achieve superior financial returns by investing with the strategic insights of an experienced industry participant, the operating advantages of a world-class manager, and the return objectives of a disciplined financial investor. The principals of SLP, which include Jim Davidson, Glenn Hutchins, David Roux, and the partners of Integral Capital Partners (Integral) and of Kleiner, Perkins, Caufield, and Byers (KPCB), have extensive experience investing in, managing, and financing technology and other growth companies. SLP also works closely with a network of technology industry executives, who bring valuable insight and assistance in sourcing transactions, analyzing industry trends, building management teams, and adding value to SLP's portfolio companies. Silver Lake has offices in Menlo Park, Calif. and New York City. Additional information about SLP is available at http://www.slpartners.com. |
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About Gartner Gartner, the world's premier business technology advisor, was founded in 1979 and is headquartered in Stamford, Conn. Gartner provides unrivaled research content and objective insight to a connected world of more than 9,600 client organizations worldwide. The company achieved fiscal 1999 revenue of $734 million and has 80 locations worldwide. Gartner's 3,400 associates, including 1,200 research analysts and consultants, help clients achieve their business objectives through the intelligent and efficient use of technology. For more information about Gartner's industry-leading research capabilities, services and events, please visit www.gartner.com. |
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Certain statements contained herein, including statements regarding the development of the company's services, markets and future demand for the company's services and other statements regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby. Factors that could cause actual results to differ materially include, but are not limited to, ability to attract and retain professional staff of research analysts upon whom the company is dependent, ability to effectively manage growth, the ability to achieve continued customer renewals and achieve new contract growth in light of potentially adverse economic conditions and competitive pressures, ability to integrate operations of possible acquisitions, ability to manage the company's strategic partnerships, rapid technological advances, substantial competition from existing competitors and potential new competitors, risks associated with intellectual property rights important to the company's products and services, additional risks associated with international operations including foreign currency fluctuations and other risks listed from time to time in the company's reports filed with the Securities and Exchange Commission. Forward-looking statements included herein speak only as of the date hereof and the company undertakes no obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.
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