Microsoft has announced a 10-year strategic partnership with the London Stock Exchange Group, a world-leading financial markets infrastructure and data provider. This partnership will also see the tech giant acquiring a 4% equity stake in the Exchange.
Following LSEG’s acquisition of Refinitiv, a market leader in data services, Microsoft said LSEG has differentiated itself in the market with an end-to-end proposition across trading, execution, data, and analytics solutions. The partnership looks to ready the financial markets with next-generation data, analytics, and workspace solutions that transform how firms connect, research, analyze, collaborate, and transact across the entire financial markets value chain.
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” said David Schwimmer, CEO of London Stock Exchange Group.
Additionally, Microsoft adds it will explore the development of digital market infrastructure based on cloud technology, with a goal to transform how market participants interact with capital markets across a broad range of asset classes.
This partnership represents a significant milestone for the future of financial markets and builds on Microsoft’s investments across capital markets and more broadly across the financial services industry. Microsoft estimates this partnership, and broader market opportunity could generate an additional $5 billion in revenue for the company over the next 10 years, including the $2.8 billion minimum spend commitments from LSEG for cloud services and support.
Microsoft will also purchase the equity through the acquisition of shares from the Blackstone/Thomson Reuters Consortium.
