London Stock Exchange Group is in talks to buy credit specialist Octus in a $3.5bn deal that would enhance its data and analytics offering. Octus’ coverage of leveraged finance, bankruptcy markets and private credit is highly complementary to LSEG’s existing fixed income and private markets solutions, the company said, confirming the talks but noting no decisions have been taken. Octus, formerly Reorg, is owned by UK private equity group Permira, which acquired it in 2022 for about $1.3bn, meaning a sale at $3.5bn would reflect a significant valuation increase.
The transaction would mark a major expansion for LSEG into private markets, which have grown rapidly, with private capital assets rising from $14tn in 2020 to $24tn today, per McKinsey, and private credit funds managing over $2.5tn of that. LSEG already sells data on private equity and private credit and launched the Pisces private securities exchange. The move follows BlackRock’s £2.55bn purchase of Preqin last year, underscoring demand for private assets data.
LSEG aims to become a financial data behemoth, building on its 2019 $27bn acquisition of Refinitiv, which shifted its revenue model toward data sales. The group faces pressure from activist investor Elliott Management, AI disruption fears and weak domestic listings, with shares down nearly 5% on Tuesday. Permira and Octus declined to comment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing