Microsoft to buy stake in London Stock Exchange, which commits to spending billions on cloud services

Microsoft to buy stake in London Stock Exchange, which commits to spending billions on cloud services

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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,
-0.80%

is going to buy a 4% stake in the London Stock Exchange
LSEG,
+3.83%

— valued at £1.5 billion ($1.8 billion) using Friday’s closing price — from Blackstone
BX,
-0.72%

and Thomson Reuters
TRI,
-0.14%
,
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,
-1.39%

AWS has previously identified the LSE as a customer.

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