Key Takeaways
- • Permira has agreed to sell credit intelligence provider Octus to London Stock Exchange Group (LSEG) for $3.5bn in cash, according to Bloomberg, marking a significant exit for the private equity firm.
- • Octus is forecast to generate more than $300m in revenue this year, with LSEG expecting the deal to be earnings-neutral in its first full year before becoming accretive.
- • The transaction is expected to close in the first half of 2027, with LSEG financing the purchase through external debt and moving leverage toward the upper end of its 1.5x to 2.5x target range by end-2027.
- • The acquisition expands LSEG's credit data and analytics capabilities as demand for specialist private credit intelligence grows.
- • The deal comes as LSEG faces pressure from activist investor Elliott Investment Management to accelerate shareholder returns and review its portfolio.
Summary
Permira has agreed to sell Octus, the New York-based financial intelligence and data provider formerly known as Reorg, to London Stock Exchange Group for $3.5bn in cash, according to a report by Bloomberg. The deal represents a significant exit for Permira, which agreed to invest in the business in 2022. Octus covers leveraged finance, distressed debt, restructuring and private credit, and is forecast to generate more than $300m in revenue this year.
LSEG expects the acquisition to be earnings-neutral in its first full year before becoming accretive thereafter. The transaction is reportedly expected to close in the first half of 2027. LSEG plans to fund the purchase with external debt, which would take its leverage towards the upper end of its target range of 1.5 to 2.5 times by the end of 2027. Octus founder and chief executive Kent Collier will reportedly remain in charge following completion.
The acquisition strengthens LSEG's credit data and analytics offering at a time when demand for specialist intelligence is rising alongside the growth of private credit markets. It follows LSEG's $27bn acquisition of Refinitiv, completed in 2021, which substantially broadened the group's financial data operations beyond its traditional exchange business.
The deal also arrives as LSEG faces pressure from activist investor Elliott Investment Management to accelerate shareholder returns and review its portfolio. LSEG reported third-quarter constant currency income growth of 8%, ahead of its previous guidance of up to 7.5%, and said it has capacity for an additional £1bn to £1.5bn in share buybacks in 2027.
LSEG expects the acquisition to be earnings-neutral in its first full year before becoming accretive thereafter. The transaction is reportedly expected to close in the first half of 2027. LSEG plans to fund the purchase with external debt, which would take its leverage towards the upper end of its target range of 1.5 to 2.5 times by the end of 2027. Octus founder and chief executive Kent Collier will reportedly remain in charge following completion.
The acquisition strengthens LSEG's credit data and analytics offering at a time when demand for specialist intelligence is rising alongside the growth of private credit markets. It follows LSEG's $27bn acquisition of Refinitiv, completed in 2021, which substantially broadened the group's financial data operations beyond its traditional exchange business.
The deal also arrives as LSEG faces pressure from activist investor Elliott Investment Management to accelerate shareholder returns and review its portfolio. LSEG reported third-quarter constant currency income growth of 8%, ahead of its previous guidance of up to 7.5%, and said it has capacity for an additional £1bn to £1.5bn in share buybacks in 2027.
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