Business
LSEG and Microsoft launch strategic partnership
LSEG and Microsoft launch strategic partnership.
About this update from London Stock Exchange Group Plc
[{"type":"text","content":"\n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION\n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n \n \n \n 12 December 2022\n \n \n \n \n \n \n \n LSEG and Microsoft launch 10-year strategic partnership for next-generation data and analytics and cloud infrastructure solutions; Microsoft to\n \n \n make equity investment\n \n \n in LSEG\n \n \n through acquisition of shares \n \n \n \n \n \n \n Strategic partnership highlights\n \n \n · New collaboration to architect LSEG's data infrastructure and build intuitive next-generation productivity, data and analytics and modelling solutions with Microsoft Azure, AI, and Microsoft Teams\n \n · Step-change in services for customers across the financial markets value chain, including an enhanced version of LSEG Workspace with seamless Teams communication and Microsoft 365 interoperability with built-in compliance for the first time\n \n · LSEG's data platform and other key technology infrastructure to migrate to Microsoft Azure, enhancing its existing cloud migration strategy\n \n · Microsoft to purchase approximately 4% equity stake in LSEG through the acquisition of shares from the Blackstone/Thomson Reuters Consortium\n \n · It is intended that Scott Guthrie, Microsoft's Executive Vice President, Cloud and AI Group, will be appointed as a non-executive director of LSEG in due course subject to receipt of appropriate approvals\n \n \n \n \n Financial effects for LSEG\n \n \n · Expected to increase LSEG's revenue growth meaningfully over time as new products come on-stream\n \n ·Total incremental cash costs over 2023-2025 expected to be in the range of £250-300 million, including around £100 million in capex and a 50-100 basis points impact on EBITDA margin over the same period\n \n ·Contractual commitment by LSEG for minimum cloud-related spend with Microsoft of $2.8 billion (£2.3 billion) over the term of the partnership, reflecting minimum cloud consumption expectations and consistent with existing long-term opex and capex plans\n \n · Additional spend with Microsoft will be driven by the success...