In a major development, Microsoft is buying a 4 percent stake in the London Stock Exchange as part of a deal meant to provide for better service delivery the stock exchange’s customers through improved data and analytics.
The deal that will see the market operator spend at least $2.8 billion over 10 years on the software provider’s cloud services.
As a result, the shares of the London Stock Exchange Group (LSEG) gained 4 percent in early trade on Monday.
The partnership “creates attractive revenue growth opportunities for both companies,” LSEG CEO David Schwimmer said in the statement.
As part of the deal, the London Stock Exchange’s data platform and other technology infrastructure will migrate into Microsoft’s Azure cloud environment.
The companies also plan to work together to develop new products and services for data and analytics using Microsoft Azure, Microsoft Teams and Microsoft’s artificial intelligence (AI) capabilities.
As a start, the exchange will be able to share its data and analytics with Teams and Microsoft 365, which includes Excel and PowerPoint.
“The partnership will build on the good progress made by LSEG on the integration of Refinitiv and enhance its position as a world-leading financial markets infrastructure and data provider,” the
Microsoft will buy its LSEG shares from Blackstone and Thomson Reuters (TRI). The purchase is expected to complete in the first quarter of 2023.