12th Dec 2022 09:12
(Alliance News) - London Stock Exchange Group PLC on Monday said it will buy Microsoft products for the next 10 years, and the US software company has taken a 4% stake in LSEG from the Blackstone/Thomson Reuters consortium as part of the deal.
The UK-based stock exchange & financial information company has launched a 10-year partnership with Microsoft Corp for its data, analytics and cloud infrastructure.
It has committed to spend a minimum of USD2.8 billion over the term of the partnership. Microsoft will purchase a 4% stake in LSEG through an acquisition of shares from the Blackstone/Thomson Reuters ownership consortium.
It said the total cash costs over 2023 to 2025 are expected to be in the range of GBP250 million to GBP300 million.
LSEG said the partnership will jointly develop "new products and services for data and analytics, building on the good progress made by LSEG on the integration of Refinitiv and enhance its position as a financial markets infrastructure and data provider".
LSEG Chief Executive 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."
Under the arrangements, LSEG's data platform and other key technology infrastructure will migrate into Microsoft's Azure cloud environment.
In October, LSEG reported a strong third quarter, saying total income rose 15% to GBP1.99 billion from GBP1.73 billion year-on-year.
LSEG shares were up 3.9% at 7,698.00 pence each on Monday morning in London; Microsoft shares closed at USD245.42 on Friday in New York.
Gross profit rose 13% to GBP1.70 billion from GBP1.50 billion.
By Xindi Wei, Alliance News reporter
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