London Stock Exchange Group Buys Octus for $3.54 Billion
London Stock Exchange Group agreed to acquire credit intelligence firm Octus for $3.54 billion to expand its presence in private markets and credit data.
The London Stock Exchange Group (LSEG) agreed to acquire Octus, a provider of credit intelligence, data, and workflow, from private equity firm Permira and its management for approximately $3.54 billion in cash. This represents LSEG's largest acquisition since its 2019 purchase of Refinitiv and is intended to strengthen its position in credit markets and companies in financial distress.
The transaction, which will be financed through external debt, is scheduled to close in the first half of 2027. LSEG expects the deal to generate more than $300 million in revenue in 2026 and to be earnings neutral during its first year. The move is part of a broader strategy to expand into private markets and high-growth sectors to counter concerns that artificial intelligence is disrupting financial data usage.
Alongside the announcement, LSEG raised its 2026 revenue, margin, and free cash flow guidance following strong third-quarter performance. The company now forecasts organic constant currency growth in total income of at least 8%, up from a previous range of 7.0% to 7.5%. LSEG also increased its equity free cash flow expectation to at least 2.8 billion pounds. The acquisition comes as LSEG faces pressure from activist investor Sam Elliott to modify its portfolio.
