The owner of the London Stock Exchange has revealed that Microsoft is to buy a 4% stake in the business as part of a deal that will see its data platform migrate to cloud technology.
The London Stock Exchange Group (LSEG) said it had made a contractual commitment for a minimum $2.8bn (£2.3bn) cloud-related spend with the US tech firm over the course of their 10-year partnership.
Microsoft said the basis of the agreement will be the digital transformation of LSEG’s technology infrastructure and Refinitiv platforms on to the Microsoft Cloud.
“The initial focus will be on delivering interoperability between LSEG Workspace and Microsoft Teams, Excel and PowerPoint with other Microsoft applications and a new version of LSEG’s Workspace,” the US company said.
LSEG shares were up 4% on Monday morning.
Microsoft will buy LSEG shares from the Blackstone/Thomson Reuters consortium, the exchange operator said.
Its purchase is expected to complete in the first quarter of 2023.
Chief executive of LSEG David Schwimmer said: “This strategic partnership is a significant milestone on LSEG’s journey towards becoming the leading global financial markets infrastructure and data business, and will transform the experience for our customers.
“Bringing together our leading data sets, analytics, and global customer base with Microsoft’s comprehensive and trusted cloud services and global reach creates attractive revenue growth opportunities for both companies.
“We are delighted to welcome Microsoft as a shareholder. We believe our partnership with Microsoft will transform the way our customers discover, analyse, and trade securities around the world, and create substantial value over time. We look forward to delivering on that potential.”