MasterCard Buys TowerGroup to Beef Up Its Research Unit

MasterCard International today announced it is acquiring TowerGroup, the Needham, Mass.-based research firm, from Reuters PLC for an undisclosed price. The 11-year-old TowerGroup, which focuses on payments-technology and financial-services research, will become part of MasterCard Advisors, a subsidiary through which the bank card company operates an existing research and advisory service, Purchase Street Research, started in 2003. MasterCard says in a statement released today that its acquisition of TowerGroup is meant to add depth to its research expertise “across the financial services industry.” Mark Sievewright, chief executive of TowerGroup since 2000 and a former MasterCard executive, will step down after a short transition period. Taking over as chief executive is Karen Cone, a Gartner Inc. veteran hired by MasterCard Advisors last year. In a conference call this morning announcing the deal, both MasterCard and TowerGroup officials made emphatic assurances that TowerGroup would maintain its ability to generate objective research on matters relating to MasterCard and its competitors. “We're committed to full editorial independence,” said Cone. Sievewright pointed to the firm's experience under Reuters, which has owned TowerGroup since 1999. “TowerGroup analysts have had a different perspective than Reuters” at times, he said. TowerGroup will remain headquartered in Needham.