London Stock Exchange Group (LSEG) is in discussions about a potential acquisition of financial data provider Octus in a deal that could value the company at approximately $3.5 billion.
The talks involve Octus and its private equity owner, Permira, as the investment firm explores options for selling the business. However, discussions remain preliminary, and there is no certainty that an agreement will be reached.
Octus provides specialised information on credit markets, particularly companies experiencing financial distress. Its services combine reporting, legal analysis and technology to monitor regulatory disclosures and court filings, helping banks, investors and law firms assess credit risks and restructuring opportunities.
Permira acquired a controlling stake in Octus from Warburg Pincus in 2022 at a valuation of approximately $1.3 billion. The firm has been exploring a sale since last year and has also held discussions with other potential buyers.
A successful acquisition would strengthen LSEG’s financial information and analytics business, potentially expanding the range of specialised data available to customers through its Workspace platform.
The proposed transaction would also reflect continued investor interest in financial data businesses, which generate recurring subscription revenue from banks, investment firms and other institutional clients.
LSEG faces pressure from activist investor Elliott Management to improve its business performance. The company has been pursuing opportunities to strengthen its competitive position in financial markets data and analytics.
LSEG declined to comment on the discussions, while Permira also declined to comment. Octus did not immediately respond to requests for comment.
The potential acquisition remains unconfirmed, with the final outcome dependent on negotiations between the parties.
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