Key Takeaways
- • LSEG is in discussions to acquire financial data provider Octus from private equity firm Permira in a deal valued at approximately $3.5bn, according to Reuters.
- • LSEG reportedly confirmed the talks on Tuesday, but said no final agreement has been reached and no guarantee exists that a transaction will proceed.
- • Permira acquired a controlling stake in Octus from Warburg Pincus in 2022 at a valuation of $1.3bn, implying a substantial markup if the deal closes at $3.5bn.
- • Octus is expected to generate roughly $145m in EBITDA this year, rising to about $200m in 2027, per Reuters.
- • LSEG says the acquisition would complement its fixed income and private markets data operations and contribute immediately to revenue growth in its Data & Analytics division.
Summary
The London Stock Exchange Group (LSEG) is in discussions to acquire Octus, the New York-based financial data provider, from private equity firm Permira in a transaction valued at approximately $3.5bn, according to a report by Reuters. LSEG reportedly confirmed the talks on Tuesday, though it stated that no final agreement had been reached and there is no assurance that a deal will be completed.
Permira acquired a controlling stake in Octus from Warburg Pincus in 2022, in a transaction that valued the business at $1.3bn. Permira has been exploring a sale since last year and has reportedly held discussions with other potential buyers. Reuters reports that Octus is expected to generate approximately $145m in EBITDA this year, rising to around $200m in 2027.
LSEG said the acquisition would complement its existing fixed income and private markets data operations, while contributing immediately to revenue growth across its Data & Analytics division and the wider group. The potential transaction comes amid renewed dealmaking activity in financial data and analytics. Vista Equity Partners is also reportedly exploring a sale of private markets software provider Allvue.
Permira acquired a controlling stake in Octus from Warburg Pincus in 2022, in a transaction that valued the business at $1.3bn. Permira has been exploring a sale since last year and has reportedly held discussions with other potential buyers. Reuters reports that Octus is expected to generate approximately $145m in EBITDA this year, rising to around $200m in 2027.
LSEG said the acquisition would complement its existing fixed income and private markets data operations, while contributing immediately to revenue growth across its Data & Analytics division and the wider group. The potential transaction comes amid renewed dealmaking activity in financial data and analytics. Vista Equity Partners is also reportedly exploring a sale of private markets software provider Allvue.
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