Microsoft has bought a 4% equity stake in the London Stock Exchange Group and entered a 10-year partnership.
The partnership will see Microsoft provide the underlying cloud data infrastructure to the London Stock Exchange Group.
David Schwimmer, CEO, LSEG, 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.”
The partnership will see the two companies collaborate on the development of data and analytic services.
London Stock Exchange and Microsoft are also looking at developing cloud technology-enabled digital market infrastructure.
“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,” said Satya Nadella, chairman and CEO, Microsoft.
Shares in the exchange were purchased by Microsoft from the Blackstone/Thomson Reuters Consortium.
In July, the London Stock Exchange backed a review looking into the decrease in growth and investment for UK fintech startups.
Scott Guthrie, Microsoft’s executive vice president of its cloud and AI group is to become a non-executive director for the London Stock Exchange.
“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,” added Schwimmer.
Microsoft recently acquired Southampton-based fibre maker Lumenisity.