As part of an agreement that will see the market operator spend at least $2.8 billion over 10 years on the software provider’s cloud services, Microsoft (MSFT) is buying a 4% interest in the London Stock Exchange Group (LDNXF).
The companies jointly announced the agreement on Monday, highlighting the advantages it will provide to the consumers of the stock market through improved data and analytics. In early trading, shares of the London Stock Exchange Group (LSEG) increased by 4%.
The partnership “creates attractive revenue growth opportunities for both companies,” LSEG CEO David Schwimmer said in the statement.
The data platform and other technological infrastructure of the London Stock Exchange will be moved into Microsoft’s Azure cloud environment as part of the agreement.
The firms also want to collaborate to create fresh data and analytics-related products and services leveraging Microsoft Teams, Azure, and Microsoft’s artificial intelligence (AI) capabilities.
For starters, Teams and Microsoft 365, which includes Excel and PowerPoint, will be able to access the exchange’s data and analytics.
“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 statement said.
Refinitiv was acquired by LSEG for $27 billion last year, making LSEG the second-largest provider of financial data behind Bloomberg. The company’s data and analytics division generates two thirds of the group’s income.
In the Microsoft partnership agreement, LSEG pledges to spend at least $2.8 billion on Microsoft’s cloud-related goods and services throughout the course of the collaboration’s ten-year duration. According to the statement, this is compatible with the current long-term spending intentions.
Blackstone and Thomson Reuters will sell their LSEG interests to Microsoft (TRI). The transaction is anticipated to be finished in the first quarter of 2023.
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