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LSEG Agrees to Buy Octus for $3.5 Billion in Credit Data Push

London Stock Exchange Group will pay $3.535 billion in cash for the New York credit intelligence firm Octus, its biggest deal since Refinitiv, and raised its full year outlook alongside third quarter results.

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LSEG Agrees to Buy Octus for $3.5 Billion in Credit Data Push

Key points

  • The London Stock Exchange Group said on Thursday, October 22, 2026, that it has agreed to buy Octus, a provider of credit intelligence, data and workflow tools, for $3.535 billion in cash.
  • Octus was founded in 2013 and is based in New York City.
  • LSEG said the purchase will change its position in credit and private market data, an area where demand has grown as lending has moved away from banks and toward private funds.

The London Stock Exchange Group said on Thursday, October 22, 2026, that it has agreed to buy Octus, a provider of credit intelligence, data and workflow tools, for $3.535 billion in cash. The sellers are funds advised by Permira and the Octus management team, including founder Kent Collier. LSEG announced the deal alongside its third quarter results.

Octus was founded in 2013 and is based in New York City. It serves private, illiquid and distressed credit markets, and counts buy side firms, investment banks, law firms and advisory firms among its customers. The company has more than 900 employees, 750 customers and more than 40,000 individual users, according to the LSEG announcement. Permira funds bought Octus in 2022. Permira said the company more than tripled its annual recurring revenue during its ownership.

Why LSEG wants Octus

LSEG said the purchase will change its position in credit and private market data, an area where demand has grown as lending has moved away from banks and toward private funds. Combining Octus data with LSEG fixed income data, analytics and distribution is meant to give customers one place to source deals, assess risk and manage portfolios, the company said.

"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," LSEG chief executive David Schwimmer said in a statement reported by Reuters.

The deal is LSEG's biggest since its $27 billion purchase of Refinitiv in 2019, which turned the exchange operator into a major seller of market data as well as a creator of it.

Guidance raised with the deal

LSEG also raised its outlook for 2026. It now expects organic growth in total income excluding recoveries of at least 8.0 percent at constant currencies, up from a previous range of 7.0 to 7.5 percent. Its earnings before interest, taxes, depreciation and amortisation margin is now expected to grow by 100 to 120 basis points at constant currency, against about 100 basis points before. Equity free cash flow is expected to reach at least 2.8 billion pounds, or $3.75 billion, up from 2.7 billion pounds.

TradingView, citing the company statement, reported that Octus is expected to generate more than $300 million in revenue in 2026. LSEG said the purchase will be financed with external debt, will be neutral for adjusted earnings per share in the first full year after completion, and will add to earnings after that.

Pressure in the background

LSEG has been under pressure from activist investor Elliott, which disclosed a stake in the group in February and has pushed for portfolio changes and better margins. Reuters reported that Elliott did not immediately respond to a request for comment on the deal. LSEG shares are down roughly 2 percent so far in 2026 and about 28 percent below their February 2025 peak, as investors weigh whether artificial intelligence could disrupt the financial data business and squeeze margins.

What happens next

The transaction is expected to close in the first half of 2027, subject to regulatory approval.

Timeline

  1. 2013Octus is founded. The New York based firm builds credit intelligence, data and workflow tools for private and distressed credit markets.
  2. 2022Permira funds acquire Octus. Permira says the company more than tripled its annual recurring revenue during its ownership.
  3. Oct 22, 2026LSEG agrees to buy Octus for $3.535 billion in cash from Permira funds and Octus management, and raises its full year 2026 guidance alongside third quarter results.
  4. H1 2027The acquisition is expected to close in the first half of 2027, subject to regulatory approval.

Sources