LSEG agrees $3.54B Octus deal, lifts 2026 outlook as income climbs 8.8%
What's the deal? London Stock Exchange Group has agreed to buy credit intelligence firm Octus for $3.535 billion in cash and raised its full-year guidance after third-quarter organic income, excluding recoveries, rose 8.8%. The sellers are funds advised by private equity group PermiraDealroom has a profile for this one. Try Dealroom → and Octus management, including founder Kent Collier.
What does Octus do? Founded in 2013, Octus provides credit data, intelligence and workflows for buy-side firms, investment banks, law firms and advisers, with a leading position in illiquid and private credit. It is expected to generate more than $300 million of revenue in 2026 at an adjusted EBITDA margin of around 40%.
What's the endgame? The acquisition deepens LSEG's exposure to private and distressed credit data, folding Octus into its Data & Analytics division under Collier. Chief executive David Schwimmer said the moves position LSEG as "a global leader in fixed income to partner with our customers throughout the trade lifecycle."
The numbers: LSEG now expects full-year organic growth in total income, excluding recoveries, of at least 8%, up from 7% to 7.5% at the half year — its strongest annual pace since 2018. Markets income grew 12.5% and FTSE Russell rose 10.2%, while Tradeweb's average daily trading volumes climbed 22.4% to $3.2 trillion.
Why now? The deal lands days after Tradeweb agreed to buy electronic credit marketplace Trumid for about $1.75 billion, part of a broader push to combine fixed-income data, analytics and trading as credit markets go electronic and private credit expands.
What could go wrong? The purchase is financed by external debt and is expected to be neutral to adjusted earnings per share in its first full year, accretive thereafter. LSEG expects leverage to reach the upper end of its 1.5 to 2.5 times target range by the end of 2027, before easing by the end of 2028.
The deal is expected to close in the first half of 2027, subject to regulatory approval.
The signal: Back-to-back deals from LSEG and Tradeweb show exchanges racing to own the data, analytics and trading layers of fixed income — especially the fast-growing, harder-to-price corners of private and distressed credit.
Read more: proactiveinvestors.com
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