Forrester Research Inc. has bought JupiterResearch LLC and its parent company, JUPR Holdings Inc., from MCG Capital Corp. for $23 million in cash plus assumed liabilities as part of its growth strategy.

This purchase is part of Forrester's larger expansion plans in marketing and technology research and complements its syndicated business model. JupiterResearch joins Forrester's Marketing & Strategy Client Group, which contributed $46.4 million to Forrester's total revenue in 2007.

"All of the Forrester team is very happy to welcome JupiterResearch's employees and clients to the Forrester brand," said George F. Colony, chairman/CEO of Forrester, Cambridge, MA, on a conference call yesterday.

"Our combined company will provide a unique and differentiated option for industry leaders and give us an even stronger platform for growth," he said.

Both Forrester and JupiterResearch cover mobile marketing and technology as part of their interactive focus.

JupiterResearch has 83 employees and 2007 revenues of approximately $14 million. Its client base includes Fortune 500 companies nationwide and overseas, although a spokesperson declined to disclose names.

Forrester, with 2007 revenues of $212 million, now has more than 1,000 employees.

Mr. Colony cited several reasons for the acquisition, including a long-term increase in cash flow, more content, 350 new clients, opportunities to cross-sell services to different departments within companies, experienced employees to extend sales and research coverage, and more data.

"Jupiter's online survey portfolio is unique and powerful," Mr. Colony said. "We're adding other rich offerings that will help executives navigate a world increasingly changed by technology."

Forrester will phase out the JupiterResearch brand around the end of the year. The company claims that it will keep the majority of JupiterResearch employees on staff.

"Integration has already begun," Mr. Colony said. "We plan to retain almost all Jupiter people, as there is little general and administrative redundancy."

Forrester claims that its projected revenue this year is $250 million and that it has $280 million in cash, lending credence to the likelihood that more announcements could be on tap before the end of the year.

"Our company is seeking continued expansion, and we hope to announce similar additions in the near future," Mr. Colony said. "The economic slowdown is working in our favor for pricing and potential deals, and we're at a major bargaining advantage.

"We remain very active on the M&A front and we're spending a lot of time gauging our options," he said. "However, they must be companies like JupiterResearch that fit in with us financially, culturally and strategically: good clients, good people, good fit."

Forrester serves marketing and strategy, IT and technology industry players across 19 professional roles at major companies, providing proprietary research, consumer insight, consulting, events and peer-to-peer executive programs.

The seven marketing and strategy roles Forrester currently serves are marketing leadership/chief marketing officer, interactive marketing, direct marketing, customer experience, consumer product strategy, ebusiness and channel strategy, and consumer market research.

Both Forrester and JupiterResearch have analysts dedicated to providing research and coverage of mobile marketing.

The Jordan, Edmiston Group Inc., a media investment bank, represented Forrester in this transaction, acting as its exclusive financial advisor.

MCG Capital provides capital to support the growth and value creation strategies of small to mid-sized companies.

The addition of JupiterResearch will fortify Forrester's existing data-driven insight, research and analysis, advice and best practices for marketing and strategy professionals globally.

These professionals include chief marketing officers, consumer market researchers, consumer product strategists, customer experience experts, direct marketers, interactive marketers and ebusiness and channel specialists at major companies.

Like Forrester, JupiterResearch provides business professionals with syndicated research, analysis, and advice backed by proprietary data. JupiterResearch has a growing library of syndicated research, consumer data and market forecasting reports.

JupiterResearch provides consumer-facing companies with online advertising, marketing and customer service strategies to understand, attract, convert and retain customers.

The acquired company advises online businesses to help them make critical decisions about technology selection, spending, staffing and Web site effectiveness. It also guides technology vendors and service providers on market opportunities, positioning, product definition and pricing.

"Our mission is to make leaders successful every day, and this acquisition gives us more ammunition to make those people successful," said Charles Rutstein, chief operating officer of Forrester, told this publication.

"This story is about growth, as we are seeking to be the dominant player for marketing and strategy, and adding Jupiter gives us the depth and breadth to achieve that," he said. "We're exploring a very healthy pipeline of deals, but we're also being very selective.

"I like to think that we are creating a company that will have the ability to serve our clients as no one else can. There's no direct analog in terms of competition. Nobody goes to market with the same suite of research, data, consulting and events services as we do."