18 NOVEMBER 1999 25/99
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REUTERS ACQUIRES TOWERGROUP -- A LEADING
FINANCIAL SERVICES RESEARCH FIRM
London -- Reuters, the global information and news group, has acquired 84% of
TowerGroup, a leading research and advisory firm which delivers research and
insight on the impact of Information Technology in the financial services
industry. TowerGroup, which is based in Needham, Massachusetts, provides
continuous advisory research services on these markets on a subscription basis
as well as consultancy engagements. The purchase consideration is not material
to Reuters.
This acquisition extends Reuters position in the growing global market for the
provision of high quality research material. Reuters plans to make further
acquisitions and investments in targeted vertical research information sectors
in the US, Europe and Asia to develop a global research and advisory business.
Reuters will extend TowerGroup's market position by ensuring its content is
available as a premium service through its multiple global distribution
channels. TowerGroup's products will continue to be aggressively marketed in
their current form through its own direct sales force.
TowerGroup will operate as an entity within Reuters Ventures, the division
recently established to exploit new business opportunities. In line with Reuters
editorial principles, TowerGroup will continue to maintain complete editorial
independence, objectivity and impartiality.
Diogo Teixeira, the founder of TowerGroup, and TowerGroup employees will retain
the remaining 16% of the share capital. Diogo Teixeira will continue to be
actively involved in the future development of the business and remain as a
director on the TowerGroup board.
ROB ROWLEY, Reuters finance director and head of the Ventures division,
commented: "Reuters is now expanding into selected new high value areas in the
information market. We plan to expand by acquisition in order to meet the
demands of our corporate customers for a broader range of high value independent
research information.
"Reuters represents an excellent international partner for these businesses
because of its distribution capabilities, its international client base and its
well established editorial standards."
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DIOGO TEIXEIRA, chairman and chief executive officer of TowerGroup, said:
"TowerGroup welcomes this opportunity to partner with Reuters. It will allow us
to grow more quickly our research coverage and distribution into global markets
and into portions of the financial services industry where we do not yet have
products. In addition, the rapid pace of technological change in financial
services, and the impact on the industry, mean that we have greater
opportunities to serve our growing customer base than at any time in the past."
END
CONTACT:
TOWERGROUP
Sandra Kowalski Tel: +781 292 5298
Corporate Communications
sandra.kowalski@towergroup.com
REUTERS
Brad Hanson
Director, Reuters Ventures Tel: 0171 542 7545
brad.hanson@reuters.com
Geoff Wicks Tel: 0171 542 8666
Director, Corporate Relations
geoff.wicks@reuters.com
Peter V. Thomas Tel: 0171 542 7457
Director, Media Relations
peter.v.thomas@reuters.com
NOTE TO EDITORS
TowerGroup
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TowerGroup delivers research and insight on the impact of information technology
in the global financial services industry. Its research and advice is sought by
clients to help them manage IT transformations successfully. Its clients are the
largest, most influential, and most successful banks, securities and investments
firms, insurance companies, software and hardware providers, and systems
integrators. A significant number of its clients are professional services and
consulting firms, including those most acknowledged as leaders in their
respective fields.
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TowerGroup offers two services:
o The Comprehensive Advisory Service (CAS) is a subscription research service
that delivers research with a complete view of the critical trends and
issues financial services executives face as they make their information
technology decisions. CAS clients are encouraged to take advantage of
direct access to TowerGroup analysts, whether by telephone, through e-mail,
or in face-to-face meetings for in-depth discussions on topics covered in
Research Notes. CAS clients choose from six Advisory Service options:-
Retail Banking, Securities & Investments, Consumer Credit, Insurance,
Wholesale Banking and Benchmarking/Strategic IT Investments.
o TowerGroup Consulting Services offers a single-client engagement focused on
producing a specific evaluation or recommendation. Typical consulting
projects involve the following areas of strategic IT planning:- information
assessment, market potential assessment, internet/e-commerce strategy,
competitive market analysis, system evaluation and assessment, product
positioning, industry practice analysis, merger and acquisition planning,
process design, best practice reviews, system development lifecycle
management, business process risk assessment, technology risk assessment,
and software certification.
FOR MORE DETAILS SEE: WWW.TOWERGROUP.COM
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REUTERS supplies the global financial markets and the news media with the widest
range of information and news products including real-time financial data,
collective investment data, numerical, textual, historical and graphical
databases plus news, graphics, news video, and news pictures. It reaches over
519,000 users in 57,720 locations and extensively uses internet technologies for
wider distribution of information and news. Reuters designs and installs
enterprise-wide information management and risk management systems for the
financial markets as well as providing equity and foreign exchange transaction
systems. Reuters provides news and information to over 225 Internet sites
reaching an estimated 12 million viewers monthly. Reuters is the world's largest
news and television agency with 1,946 journalists, photographers and camera
operators in 183 bureaux serving 157 countries. News is published in 23
languages. Instinet, an international electronic agency stockbroker, is an
independently managed subsidiary of Reuters. The Group employed 16,898 staff in
212 cities in 95 countries at 30 June 1999.
FOR MORE DETAILS SEE: WWW.REUTERS.COM/MEDIAPACK/
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Reuters and the dotted and sphere logos are the trademarks of the Reuters Group
of Companies.
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