Gartner Inc. announced an agreement on Tuesday to sell its talent assessment business to Exponent Private Equity for $400 million on the same day it posted significant quarterly and year-end financial results.
The Stamford tech company’s CEO Gene Hall had said in October that Gartner was exploring deals to sell CEB Talent Assessment business, formerly SHL. Gartner acquired CEB in January 2017 in a cash and stock transaction worth about $2.6 billion.
The new deal is expected to close in the first half of this year.
“While CEB Talent Assessment is a recognized leader in an expanding marketplace with significant growth opportunities, we determined that it was not aligned with our core focus of providing research and advisory services to address the mission-critical priorities of every functional leader in the enterprise,” Hall said.
“This transaction with Exponent is a positive step for CEB Talent Assessment clients and associates,” he said, “as it represents an opportunity to bring a renewed focus on the business to better support innovation, product development, and long-term growth.”
Meanwhile, fourth-quarter 2017 total revenue was $1 billion, up 44 percent over fourth quarter 2016, and net income for the period was $107.3 million, a 52 percent increase.
For the 12 months ended Dec. 31, total revenue was $3.3 billion, an increase of 35 percent. Net income was $3.3 million.