LSEG in talks over $3.5bn deal for credit specialist Octus

London Stock Exchange Group (LSEG) is engaged in preliminary discussions to acquire financial data provider Octus from private equity firm Permira for an estimated $3.5 billion, according to a report by Reuters. LSEG officially confirmed the ongoing talks on Tuesday, though they clarified that a final agreement had not been finalized and there was no assurance of a completed transaction.

Permira had taken a controlling stake in Octus from Warburg Pincus in 2022, having valued the company at $1.3 billion at that time. The private equity firm has been actively seeking a sale since the previous year and has reportedly engaged in discussions with multiple potential buyers. Analysts expect Octus to generate around $145 million in EBITDA this year, with this figure projected to rise to approximately $200 million by 2027.

LSEG believes the acquisition will bolster its existing fixed income and private markets data operations while also driving immediate revenue growth in its Data & Analytics division and throughout the broader group. This potential transaction follows a surge in dealmaking activity within the financial data and analytics sector, with Vista Equity Partners also reportedly considering a sale of private markets software provider Allvue.