Microsoft Corporation has agreed a deal that will see the tech giant acquire a 4% stake in the London Stock Exchange Group Plc.
A blog announcement by technology-giant published on Monday indicated that the tech company will fork $2.8 billion to complete the cloud-computing deal and plans to generate revenue of up to $5 billion from LSEG and the broader financial services sector over the 10-year period.
The announcement indicated that Microsoft would buy the equity stake in LSEG by acquiring shares from the Blackstone and Thomson Reuters Consortium.
Invezz.com, an online medium, reported that the London Stock Exchange (LSE) on its part was set to have at least $2.8 billion put into cloud services in its 10-year partnership with Microsoft.
According to the report, Through this partnership, the LSEG will tap into Microsoft’s technology to migrate the stock exchange’s markets to the cloud as well as leverage the technology to roll out new products and services.
Speaking on the deal, the CEO of London Stock Exchange Group, 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.”
Meanwhile, the LSEG shares soared nearly 4% early Monday morning following the news before paring the gains in later trading. The stock’s price was 2.1% up at 1:40 pm London time.
Elsewhere, Microsoft’s shares were trading near $246.75 pre-market, just under 1% up at 08:40 am ET. The MSFT shares closed at $245.42 on Friday, still more than 26% down year-to-date
