The London Stock Exchange Group plc (LSEG) publicly confirmed that it is engaged in discussions with the private equity firm Permira concerning a potential purchase of Octus.
The contemplated consideration is approximately $3.5 billion.
LSEG emphasized that no definitive agreement has been concluded and that there is no assurance a transaction will ultimately proceed.
Any completed deal would also require regulatory clearances.
Octus operates as a specialized provider of credit intelligence, data, and workflow tools.
Its client base spans buy-side institutions, investment banks, law firms, and advisory practices.
The company maintains proprietary datasets that span the full credit lifecycle and holds a prominent position in illiquid credit and private credit markets, segments viewed as areas of rapid expansion.
Octus has demonstrated consistent double-digit revenue growth supported by a high-retention subscription model.
LSEG noted that Octus’s offerings align closely with and would complement its existing fixed-income data and analytics capabilities as well as its private markets solutions.
From LSEG’s perspective, a successful acquisition would deliver an immediate boost to the revenue growth rate of both its Data & Analytics division and the group overall.
This potential move continues LSEG’s longer-term strategic emphasis on expanding its data and analytics franchise, building on prior investments that have shifted the group beyond its traditional exchange roots toward a broader financial information and technology platform.
Background details reported in coverage of the talks indicate that Permira, based in London, acquired a controlling interest in the New York-headquartered Octus (formerly known as Reorg) from Warburg Pincus in 2022 at a valuation of $1.3 billion.
The private equity firm has reportedly been evaluating a sale of the business since the prior year and has engaged with other potential buyers in addition to LSEG.
Separate reporting suggested Octus was on track to generate roughly $145 million in EBITDA for the current year, with projections pointing to around $200 million the following year, though these figures come from people familiar with the situation rather than official disclosures.
Market reaction on the day of the confirmation was negative for LSEG shares, which declined after initial reports of the discussions emerged and extended losses later in the session.
The talks underscore ongoing consolidation activity in the financial data sector, where providers of specialized credit and private markets information have attracted interest amid growth in non-public credit markets.
LSEG stated that it would supply further updates as appropriate while discussions continue. The announcement itself was issued in response to prior press speculation and was designated as containing inside information under applicable UK market abuse rules.
