Microsoft has announced the purchase of 4% stake in the London Stock Exchange (LSEG, its acronym in English) for 2 billion dollars
This Monday (12), the Microsoft announced the purchase of a 4% stake. stock Exchange of London (LSEG) for US$ 2 billion, equal to approximately R_jobs(data.content)nbsp;10.6 billion. The transaction is expected to close in the first quarter of 2023. The acquisition is yet another demonstration of the closer relationship between the big technology companies and financial firms.
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The strategic partnership also includes a ten-year commercial contract for the migration of LSEG’s data platform, and other technological infrastructure, to Microsoft cloud. During the term of the deal, the finance company has committed to minimum spend on the cloud, worth a total of £2.3bn (R_jobs(data.content)nbsp;15.1bn).
According to Microsoft, the focus at this early stage will be on providing “interoperability” between Bolsa’s Workspace and Microsoft Teams, Excel and Power Point, as well as other applications and a new version of the financial firm’s platform.
In a statement, Microsoft said the merger represents “a significant milestone for the future of financial markets and builds on Microsoft’s investments in capital markets and the financial services industry more broadly.” The partnership is estimated to generate an additional US$5 billion (R$26.5 billion) in revenue for the company over the next decade.
Relationship between technology and financial companies
The growth of relationships between large global cloud technology companies such as Microsoft, Google🇧🇷 amazon And IBMwith financial companies and stock exchanges, draws the attention of regulatory bodies.
In November 2021, both Google and Amazon entered into partnerships with banks and financial institutions to move trading systems to cloud-based platforms. Google has invested US$1 billion (R$5.3 billion) in the CME Group and Amazon has concluded a multi-year deal with the Nasdaq.
Regulators are concerned about financial firms’ overconfidence in some cloud computing service providers, given the potential impact on the industry if one of these providers fail, according to Reuters.
The European Union recently passed a law introducing safeguards for cloud computing providers in financial services. In response, the London Stock Exchange said the tie-up with Microsoft was a partnership to reap the benefits of “consumption-based pricing” rather than a traditional data processing services industry deal.
“We will continue to maintain our multi-cloud strategy and work with other vendors,” said David Schwimmer, CEO of LSEG.
Source: Reuters
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Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
