Microsoft on Monday said it was investing in the London Stock Exchange in a deal that will see the stock exchange use the software giant’s data and cloud infrastructure.
Microsoft
MSFT,
is going to buy a 4% stake in the London Stock Exchange
LSEG,
— valued at £1.5 billion ($1.8 billion) using Friday’s closing price — from Blackstone
BX,
and Thomson Reuters
TRI,
which hold a stake from the Refinitiv deal. In addition, Scott Guthrie, who is an executive vice president of cloud and artificial intelligence, will join the LSE as a board member.
LSE shares jumped over 4% in early trade.
Over the next three years, the LSE will be spending an additonal between £250 million and £300 million, which will hit EBITDA margins by between 50 and 100 basis points. The LSE will commit to spending at least $2.8 billion with Microsoft on cloud consumption.
Amazon’s
AMZN,
AWS has previously identified the LSE as a customer.
