Microsoft to acquire 4% stake in London Stock Exchange Group as part of 10-year cloud partnership
Microsoft is to acquire a 4% stake in the London Stock Exchange Group (LSEG), the company that owns the London Stock Exchange as well as a several other businesses including financial market data company Refinitiv which LSEG acquired from a Blackstone/Thomson Reuters consortium last year for $27 billion.
Microsoft’s stake, which it bought from the same Blackstone/Thomson Reuters consortium, constitutes part of a bigger 10-year partnership, which includes a contractual commitment for LSEG to spend a minimum of $2.8 billion on cloud computing services. This will involve LSEG migrating its data platform and “other key technology infrastructure” over to Azure, while the Workspace data and analytics product it procured as part of its Refinitiv acquisition last year will be integrated with core Microsoft applications including Teams and the broader Microsoft 365 software suite.
This initial partnership will create a single product that spans data, analytics and collaboration and could help LSEG challenge Bloomberg as the leading platform for finance and investment professionals.
This integration will allow all LSEG customers, including LSEG content, to collaborate through Teams and create models and graphs by connecting LSEG content with Excel. The companies stated that the partnership is quite broad and will allow Microsoft’s cloud-based machine-learning smarts to be combined with LSEG’s modelling and analytics to “co-develop a suite of new solutions” for financial institutions.
So this is a win-win for both firms: a huge cloud contract for Microsoft that opens it to Refinitiv’s 40,000 customers, as well as an equity investment in a major Bloomberg challenger. And for LSEG, it now has the technological and financial backing of one of world’s biggest public cloud companies.
” “Bringing together our leading data sets and analytics with a global customer base with Microsoft’s comprehensive and trusted cloud service and global reach creates attractive revenues growth opportunities for both companies,” David Schwimmer, CEO of LSEG, stated in a press release.
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