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Microsoft Purchases A Nearly 4% Stake In The London Stock Exchange As Part Of A 10-Year Cloud Agreement

Microsoft Purchases A Nearly 4% Stake In The London Stock Exchange As Part Of A 10-Year Cloud Agreement
Microsoft announced a 10-year partnership with the London Stock Exchange Group on Monday, taking a nearly 4% stake in the bourse operator.
According to the LSEG, the partnership includes next-generation data and analytics, as well as cloud computing products. It includes a new data infrastructure for the London stock exchange, as well as analytics and modeling solutions powered by Microsoft Azure, AI, and Microsoft Teams.
On Monday, LSEG's stock rose 4% in Europe.
“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,” David Schwimmer, CEO of LSEG, said in the statement.
Microsoft will buy a 4% stake in the UK firm from the Blackstone/Thomson Reuters Consortium.
Various Microsoft products will be used across various parts of LSEG's business as part of the agreement. Microsoft will migrate the bourse's data platform and other critical technology infrastructure to its cloud, which will be built on Azure, the American conglomerate's large public cloud product.
Over a 10-year period, LSEG has agreed to spend a minimum of $2.8 billion on cloud-related products with Microsoft.
According to the stock exchange, this is "consistent with existing long-term" spending plans.
Microsoft and LSEG will also collaborate to create new professional collaboration tools. Workspace, a data and analytics platform developed by LSEG, is a product.
The two companies will collaborate to improve this product and integrate it with Microsoft Teams, the company's messaging app.
According to Raymond James' Marok, the Microsoft deal will most likely close despite the FTC lawsuit.
According to the release, Scott Guthrie, Microsoft's executive vice president for Cloud and AI Group, will join LSEG as a non-executive director.
Microsoft's chairman and CEO, Satya Nadella, stated, "Advances in cloud and AI will fundamentally transform how financial institutions research, interact, and transact across asset classes, as well as adapt to changing market conditions."
In 2019, the London Stock Exchange agreed to buy financial information firm Refinitiv in a $27 billion deal.

Christopher J. Mitchell

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