LSEG buys Octus for $3.535bn in cash
London Stock Exchange Group plc (LSEG) has agreed to buy Octus for $3.535bn in cash, funded with external debt. Reuters reported on 13 October that LSEG was negotiating with Permira to buy Octus for about $3.5bn, and said LSEG confirmed the talks. LSEG announced the agreed deal in a regulatory news service (RNS) statement at 7:00am today.
| Term | Detail |
|---|---|
| Acquirer | LSEG |
| Sellers | Funds advised by Permira and Octus management, including founder Kent Collier |
| Consideration | $3.535bn in cash |
| Funding | External debt |
| Expected completion | First half of 2027, subject to regulatory approval |
Octus sells credit intelligence, meaning data and workflow tools on companies’ debt. It turns hard-to-access credit documents, including covenants (loan conditions) and deal terms, into searchable data. LSEG expects 2026 revenue above $300m, with strong double-digit growth and an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin, a profitability measure, of around 40%. These are LSEG’s own expectations. Octus has 750 customers and more than 40,000 users, including banks, law firms and buy-side firms, the investors that buy and manage assets.
LSEG says Octus covers private and illiquid credit, debt that rarely trades, which complements its liquid-credit products such as IFR news, Yield Book and LPC analytics. It also gives LSEG a stronger footprint among hedge funds, where it has historically been under-penetrated.
“Combining Octus’ leading proprietary data and intelligence with LSEG’s data and analytics business creates a powerful offering for our customers, and further accelerates our growth,” said David Schwimmer, chief executive of LSEG.
LSEG says the deal is neutral to adjusted earnings per share in the first full year after completion and accretive, meaning it adds to earnings, after that. Medium-term margin guidance is unchanged. Leverage, debt relative to earnings, should sit near the upper end of LSEG’s 1.5 to 2.5 times target range at the end of 2027, and return to the middle by the end of 2028.
LSEG shares traded at 9,134 pence at 9:22am today, up about 3.9% from 8,790 pence yesterday. LSEG published a separate trading update at the same time, so the move does not reflect the deal alone.
