Microsoft Corp. has agreed to buy a stake in the London Stock Exchange Group Plc that will give the software company a 4% equity holding.
(Bloomberg) — Microsoft Corp.
has agreed to buy a stake in the London Stock Exchange Group Plc that will give the software company a 4% equity holding.
Microsoft will acquire shares held by a consortium made up of Blackstone and Thomson Reuters Corp., the company said in a statement on Monday.
Scott Guthrie, Microsoft’s executive vice president for cloud and artificial intelligence, will be appointed as a director.
The stake is part of a broader, 10-year partnership to help the London Stock Exchange owner develop data analytics and cloud infrastructure using Microsoft’s products, the Redmond, Washington-based company said in the statement.
The deal is expected to cost LSEG £250 million ($306 million) to £300 million between 2023 and 2025, including about £100 million in capital spending.
Microsoft can expect to get about $2.8 billion in spend from LSEG over the life of the partnership, with additional spending depending on the “success of the strategic partnership” and demand for LSEG’s data platform and professional services.
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