(Reuters) Alphabet Inc. has struck a 10-year deal to invest $1 billion in CME Group and take its trading systems to the cloud.
CME group is expected to start shifting its technology infrastructure to Google Cloud next year.
The CME deal is a win for Google which is competing with Amazon and Microsoft for cloud control. The deal also allows the search engine giant to establish a strong footing in the financial services sector.
CME is expected to benefit from easy access for more market participants. The company will also optimize costs and improve its IT infrastructure and related operations.
Google’s $1 billion investment will in the form of non-voting convertible preferred stock
GOOGL: NASDAQ is up +1.05%, CME: NASDAQ is up +0.81%.
