The partnership aims to build a scalable platform for LSEG’s Data and Analytics business, using the Microsoft Cloud and its AI capabilities and builds on LSEG’s acquisition of Refinitiv in January last year
Microsoft acquires 4% stake in LSEG. (Credit: efes from Pixabay)
Microsoft has entered into a 10-year long-term strategic partnership with the London Stock Exchange Group (LSEG) and has obtained a 4% stake in the UK stock exchange for $2bn.
The partnership aims to strengthen LSEG’s data infrastructure using Microsoft Cloud and develop new products and services for data and analytics.
It builds on LSEG’s acquisition of financial market data and infrastructure provider Refinitiv in January last year, which supported the UK company’s cloud-based data platform.
Through the partnership, LSEG will use Microsoft Cloud and its AI capabilities, to build a scalable platform for its Data and Analytics business, and deliver next-generation services.
Microsoft chairman and CEO Satya Nadella said: “Advances in the cloud and AI will fundamentally transform how financial institutions research, interact, and transact across asset classes, and adapt to changing market conditions.
“Our partnership will bring together the industry leadership of the London Stock Exchange Group with the trust and breadth of the Microsoft Cloud to build next-generation services that will empower our customers to generate business insights, automate complex and time-consuming processes, and ultimately, do more with less.”
Under the terms of the partnership, LSEG will migrate its data platform and other crucial technology infrastructure into Microsoft’s Azure cloud environment.
The group will leverage Microsoft Azure Purview and Azure Synapse to build its cloud-based data architecture that consolidates its datasets into a single, flexible infrastructure.
The partnership will advance Workspace, the UK stock exchange’s next-generation data and analytics workflow solution, to make it interoperable with certain Microsoft applications.
In addition, LSEG and Microsoft will explore the development of digital market infrastructure based on cloud technology, and introduce new cloud-based analytics services.
Furthermore, Microsoft will purchase shares representing a 4% equity stake in LSEG, from affiliates of Blackstone and Thomson Reuters.
LSEG CEO 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.”