Permira has agreed to sell credit intelligence provider Octus to London Stock Exchange Group (LSEG) for $3.5bn in cash, with the transaction reportedly expected to close in the first half of 2027, according to Private Equity Wire. Octus is forecast to generate more than $300m in revenue this year, according to Private Equity Wire.
Deal terms, timing, and expected financial impact
The sale price is $3.5bn in cash, according to Private Equity Wire. The transaction is reportedly expected to close in the first half of 2027, according to the same report. LSEG expects the acquisition to be earnings-neutral in its first full year before becoming accretive thereafter, according to Private Equity Wire.
Octus business profile and ownership
Octus is New York-based and was formerly known as Reorg, according to Private Equity Wire. The company provides financial intelligence and data covering leveraged finance, distressed debt, restructuring and private credit, according to Private Equity Wire. Permira agreed to invest in the business in 2022, according to Private Equity Wire.
Octus founder and chief executive Kent Collier is reported to remain in charge of the company following completion of the acquisition, according to Private Equity Wire.
LSEG financing and balance-sheet targets
LSEG plans to finance the purchase through external debt, according to Private Equity Wire. The debt financing is expected to take LSEG’s leverage towards the upper end of its target range of 1.5 to 2.5 times by the end of 2027, according to Private Equity Wire.
Broader corporate context cited by Private Equity Wire
The acquisition is described as expanding LSEG’s credit data and analytics capabilities as demand for specialist intelligence increases alongside the growth of private credit markets, according to Private Equity Wire. The agreement follows LSEG’s $27bn acquisition of Refinitiv, completed in 2021, which expanded the group’s financial data operations beyond its traditional exchange business, according to Private Equity Wire.
The report also says the agreement comes as LSEG faces pressure from activist investor Elliott Investment Management to accelerate shareholder returns and review its portfolio, according to Private Equity Wire. LSEG reported third-quarter constant currency income growth of 8%, exceeding previous guidance of up to 7.5%, and said it has capacity for an additional £1bn to £1.5bn in share buybacks in 2027, according to Private Equity Wire.
