Technology analysis firm Gartner Group announces a 32 percent investment in privately held Jupiter Communications.
Jupiter, which so far has grown without any outside cash, was said to be entertaining offers from Gartner and rival Meta Group earlier this year. Both companies were said to be looking to build their expertise in the area of consumer interactivity, which is a Jupiter specialty.
Jupiter, with an annual projected revenue of $10 million, was founded in 1986 and provided research and analysis about consumer online services years before its competitors caught on to the trend.
Michael D. Fleisher, president, emerging business at Gartner Group, said, "From a strategic viewpoint, this investment allows Gartner Group to leverage Jupiter's success in new markets like new media and consumer technology. And Jupiter gains the ability to leverage our skills in building a world-class distribution channel and research methodologies."
The $8 million will be used for general corporate purposes, including the expansion of the company's strategic planning services and funding for international growth, Jupiter said in a statement.
Jupiter's strategic planning services include newsletters, reports, conferences, and direct access to analysts in a single package that clients can purchase for $15,000 to $40,000.
Gartner Group, founded in 1979 and based in Stamford, Connecticut, provides information technology advisory services, research analysis, and consulting. The company has analysts in more than 75 locations worldwide.
As a result of the investment, Fleisher and John J. Neeson, senior vice president worldwide marketing, were appointed to Jupiter's board of directors.
Jupiter claims triple-digit growth since 1991 and recently acquired 8,000 additional square feet in a building adjacent to its New York City Silicon Alley headquarters. The company expects to end the year with 100 employees.