Microsoft will take up a seat on the board of the London Stock Exchange Group after purchasing 4% of the organisation as part of a multi-billion pound deal.
As a result of the investment, Microsoft expects to achieve a $5 billion revenue boost from the deal. The 10-year strategic partnership between the two businesses is set to be a win-win as efficiencies can be found that can free up the time of valuable engineers and data scientists.
Using Microsoft technology, the London Stock Exchange Group will move away from legacy platforms and siloed information and begin to make the most of the data they hold. London Stock Exchange Group will be able to leverage cloud computing infrastructure to help boost profits via Microsoft products such as Azure, AI, and Teams. The first stage of the partnership will see a new version of the Group’s Workspace be introduced.
“This strategic partnership is a significant milestone on London Stock Exchange Group’s journey towards becoming the leading global financial markets infrastructure and data business and will transform the experience for our customers. It’s a long term partnership,” said David Schwimmer, CEO of London Stock Exchange Group.
The timing of this investment is notable as London continues to try to maintain its position of global leadership as a financial centre.
Cloud technology and data analytics will be the two key areas of priority for the companies. As Euronext, the pan-European stock market, has embarked on a purchasing spree in recent years, including buying Italian stock market firm Borsa Italiana, it is hoped that this deal will enable the London Stock Exchange Group to be more competitive.
“In terms of the products we will be building together, I would expect our customers to start to see the benefits of that 18 to 24 months out, and we will continue building from there,” added Schwimmer.
In a business ecosystem where extremely large amounts of data is produced on a daily basis, investors of all sizes are looking for cutting edge technology and tools that give them insight into investment opportunities. A combination of Microsoft technology and London Stock Exchange Group’s leading position in the marketplace will make it a strong competitor in the sector going forward.