Prime Highlights-
- The London Stock Exchange Group has agreed to buy credit data specialist Octus from private equity firm Permira for $3.5bn, a deal that strengthens its data services for customers.
- The deal is LSEG’s largest acquisition since its $27bn Refinitiv purchase, and it expands the group’s reach in credit and private markets, two of the fastest-growing areas in finance.
Key Facts-
- Octus expects more than $300mn in revenue this year.
- LSEG shares rose 4 per cent in early trading.
Background-
The London Stock Exchange Group has agreed to buy credit data specialist Octus from private equity firm Permira for $3.5bn. The deal will strengthen LSEG’s data services for customers.
LSEG said Octus will transform its offering in credit and private markets, two of the fastest-growing areas in finance. The purchase is its largest since the $27bn Refinitiv deal in 2019, which turned the group into a major data and analytics player.
Chief executive David Schwimmer called Octus a high-growth business with attractive margins. He said it serves customers in private and illiquid markets, much as LSEG serves public and more liquid ones. He also noted that Octus holds proprietary data that is hard to find elsewhere.
Octus covers leveraged finance, distressed debt, direct lending and bankruptcy markets. The company expects more than $300mn in revenue this year. Formerly known as Reorg, it joined Permira’s portfolio in 2022 at a valuation of about $1.3bn.
The sale delivers a strong return for Permira. The firm has paid more than $13bn to its investors over the past year, according to a person familiar with the matter. Octus is its sixth sale to a trade buyer this year.
LSEG shares rose 4 per cent in early trading. The group also expects organic growth of at least 8 per cent this year, above its earlier guidance. Schwimmer said LSEG can fund the deal and continue share buybacks.
