LSEG agrees $3.54bn Octus takeover and lifts 2026 outlook

London Stock Exchange Group said on Thursday it has agreed to acquire credit intelligence, data and workflow provider Octus from Permira and its management for $3.54 billion ($3.535 billion) in cash, a deal the exchange group says will “transform LSEG’s presence in credit and private markets data, creating a leading proposition in these high-growth areas”.

Octus, founded in 2013, provides credit data, intelligence and workflows to buy-side firms, investment banks, law firms and advisers, and is expected to generate more than $300 million of revenue in 2026 at an adjusted EBITDA margin of around 40%. The sellers are funds advised by Permira and Octus management, including founder Kent Collier, and the deal is expected to close in the first half of 2027, subject to regulatory approval. Octus will sit inside LSEG’s Data & Analytics division under Collier.

LSEG simultaneously raised its full-year 2026 guidance “following the continued strength of our business in Q3”. The company now expects organic constant-currency growth in total income excluding recoveries of at least 8.0%, up from 7.0% to 7.5%, with EBITDA margin growth of 100 to 120 basis points at constant currency, compared with around 100 basis points previously. Equity free cash flow of at least £2.8 billion ($3.75 billion) is expected, up from £2.7 billion. Third-quarter organic income excluding recoveries rose 8.8%.

The purchase is financed by external debt and is expected to be neutral to adjusted earnings per share in its first full year, turning accretive thereafter, Dealroom reported. Chief executive David Schwimmer said the moves position LSEG as “a global leader in fixed income to partner with our customers throughout the trade lifecycle”.

Sources: Dow Jones Newswires via Morningstar | Dealroom