Filing Flows › Gartner (IT) › Takeover & LBO
Is Gartner (IT) a takeover target?
A leveraged buyout at today's price plus 30% ($242.22 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $159.33 a share (−14% against today's $186.32). Historically 2.3% of companies with its figures were bought within a year (0.46× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $242.22 | today's $186.32 plus 30% |
| × shares | 63.9 million | |
| = Equity value | $15.5B | |
| + Debt refinanced | $3.0B | |
| − Cash | $1.6B | |
| = Enterprise value | $16.8B | 11.3× EBITDA of $1.5B |
| Fees | $337M | 2% of the price |
| New debt | $8.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $9.0B | 52% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $6.4B | $1.5B | $628M | $632M | $7.6B |
| Year 2 | $6.5B | $1.5B | $580M | $673M | $6.9B |
| Year 3 | $6.6B | $1.5B | $529M | $724M | $6.2B |
| Year 4 | $6.7B | $1.6B | $473M | $787M | $5.4B |
| Year 5 | $6.9B | $1.6B | $413M | $863M | $4.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 8.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $14.2B | |
| − Debt left | $4.5B | |
| = Buyer's equity | $9.7B | |
| Money multiple | 1.08× | on $9.0B put in |
| Buyer's yearly return (IRR) | 1.5% |
Price against return
What the buyer makes at other premiums over today's $186.32; the IRR reaches 20% at $159.33 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $204.95 | 8.2% |
| 20% | $223.58 | 4.5% |
| 30% | $242.22 | 1.5% |
| 40% | $260.85 | −1.0% |
| 50% | $279.48 | −3.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $6.4B | |
| EBITDA, last 12 months | $1.5B | 23.2% of revenue |
| Depreciation and amortization | $184M | |
| Capital spending | $83.5M | |
| Debt | $3.0B | |
| Cash | $1.6B | |
| Share price | $186.32 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -0.2% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 22% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Gartner would cost about $260.85 a share, $16.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $213.71 | $13.7B |
| Median | 40% | $260.85 | $16.7B |
| High end (a quarter paid more) | 60.2% | $298.48 | $19.1B |
The odds, from history
Historically 2.3% of companies with its figures were bought within a year (0.46× the average). Its figures put it in decile 1 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Gartner's latest quarter
Gartner, Q3 2026: revenue $1.5B (-1% year over year), operating margin 18.7%, net earnings $214M, operating cash flow $294M. The chart follows the revenue to costs, profit and cash.
Questions
Is Gartner being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Gartner?
A leveraged buyout at today's price plus 30% ($242.22 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $159.33 a share (−14% against today's $186.32).
What would a takeover of Gartner cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Gartner would cost about $260.85 a share, $16.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.