(Bloomberg) -- Microsoft Corp. has made its largest push into financial services in a deal with London Stock Exchange Group Plc where the software company will co-create analytics products and integrate LSEG’s products into its own software suite.
LSEG’s Workspace platform — along with a messaging service used by traders, bankers and analysts — will be integrated into Microsoft 365 and Teams, the Redmond, Washington-based company said in a statement on Monday. Microsoft said it will also work with the stock-exchange operator on a financial-data platform, and will develop analysis and modeling services using its machine-learning capabilities.
LSEG Chief Executive Officer David Schwimmer said in a phone interview that the deal will see Microsoft partner with a market infrastructure and data provider “that works with almost every bank and asset manager in the world.” The tie up will help Microsoft “unlock access to financial markets,” he said.
The deal centers on the products LSEG acquired when it bought Refinitiv in a $27 billion takeover last year. Refinitiv, which competes with the parent company of Bloomberg News to provide financial news, data and information, serves more than 40,000 financial organizations. Many of those are already Microsoft customers, Bill Borden, Microsoft’s corporate vice president in charge of financial services, said in an interview.
Microsoft said it expects to generate $5 billion in the next decade from the partnership, which also involves moving LSEG’s data platform and other technology infrastructure to the cloud via Microsoft Azure. The company’s also taking an approximately 4% stake in LSEG valued at about $2 billion as of Friday’s close.
Read More: Microsoft to Buy 4% of London Stock Exchange Group on Cloud Deal
Microsoft shares gained 1.4% in New York at 9:40 a.m. LSEG’s shares rose as much as 4.9% in London trading.
