LSEG agreed to acquire New York-based credit intelligence provider Octus for $3.535 billion in cash, advancing its expansion in financial data. The seller group comprises funds advised by Permira and members of Octus management, including founder Kent Collier. LSEG said the transaction would combine Octus's credit intelligence and workflows with its data, analytics and distribution. Completion is expected in the first half of 2027, subject to regulatory approval.
Octus was founded in 2013 and has more than 900 employees, 750 customers and over 40,000 individual users, according to LSEG's announcement. Its clients include asset managers, investment banks, law firms and advisers across private, illiquid and distressed credit. The company is expected to generate more than $300 million of revenue in 2026, with an adjusted EBITDA margin of about 40%. LSEG said Octus has produced double-digit compound revenue growth since 2022.
CREDIT DATA STRATEGY
LSEG said Octus would extend its existing liquid-credit data position into illiquid and private credit. It estimated private credit at $3.5 trillion and the served market for private-market data, workflows and access solutions at $7 billion to $9 billion. The group plans to combine Octus content with Workspace, LPC, Yield Book, PRS and Tradeweb.
The purchase will be financed with external debt. LSEG expects the deal to lift organic revenue growth at its Data & Analytics division immediately, remain neutral to adjusted earnings per share in the first full year after completion, and become accretive thereafter. It retained its medium-term margin guidance.
INTEGRATION AND COMPLETION
Reuters described the purchase as LSEG's largest since its $27 billion Refinitiv acquisition agreed in 2019. The group has also been navigating investor concern about possible AI disruption to financial-data businesses and pressure from activist Elliott. LSEG raised its 2026 organic total-income growth outlook to at least 8% at constant currency alongside the announcement.
Collier is due to continue leading Octus inside LSEG's Data & Analytics division after completion. The immediate milestones are regulatory clearance and the targeted first-half 2027 closing. Investors will then be able to assess whether the integration broadens LSEG's private-credit reach while keeping leverage within its stated target range.