Alphabet Inc’s Google has ploughed in $1 billion into CME Group and entered into a separate deal to move the futures exchange operator’s trading systems to the cloud.
- Under the 10-year deal provisions between Google and CME, the Chicago-based exchange platform will start shifting its technology infrastructure to Google Cloud next year.
- The agreement with CME marks a huge milestone for Google’s cloud unit that competes against Amazon.com Inc and Microsoft Corp for massive, lucrative contracts from blue-chip Fortune 500 companies.
- The deal also gives Google a huge share in the financial services sector that is starting to invest big money in cloud computing services.
- Google’s $1 billion equity investment in CME Group was in the form of non-voting convertible preferred stock of CME.
The partnership with Google would enable CME to provide easy access to additional market participants, cost optimization, and streamlining IT infrastructure.
GOOGL, up +1.16%, CME up +1.37%