The London Stock Exchange Group (LSEG) is in discussions to acquire financial data provider Octus from private equity firm Permira in a deal valued at approximately $3.5bn, according to Private Equity Wire. LSEG reportedly confirmed the talks on Tuesday, while saying that no final agreement had been reached and that there was no guarantee a transaction would proceed, according to Private Equity Wire.
Potential acquisition terms and status
The discussions involve LSEG acquiring Octus from Permira at a reported value of approximately $3.5bn, according to Private Equity Wire. LSEG has said it confirmed the talks on Tuesday, but stated that there is no final agreement and no guarantee a transaction will proceed, according to Private Equity Wire.
Octus ownership and prior valuation
Permira acquired a controlling stake in New York-based Octus from Warburg Pincus in 2022, in a transaction that valued the business at $1.3bn, according to Private Equity Wire. Permira has been exploring a sale since last year and has reportedly held discussions with other potential buyers, according to Private Equity Wire.
Financial expectations cited
Octus is expected to generate approximately $145m in EBITDA this year, rising to around $200m in 2027, according to Private Equity Wire. The report cited by Private Equity Wire attributes these expectations to Reuters.
LSEG’s stated rationale and broader market activity
LSEG said the acquisition would complement its existing fixed income and private markets data operations, while contributing immediately to revenue growth across its Data & Analytics division and the wider group, according to Private Equity Wire. The potential transaction comes amid renewed dealmaking activity in financial data and analytics, with Vista Equity Partners also reportedly exploring a sale of private markets software provider Allvue, according to Private Equity Wire.
Widely-known context: LSEG is the London Stock Exchange Group, and “EBITDA” is a commonly used measure of operating performance that stands for earnings before interest, taxes, depreciation, and amortization.
