Permira has agreed to sell credit intelligence provider Octus to London Stock Exchange Group (LSEG) for $3.5bn in cash, marking a significant exit for the private equity firm amid growing demand for private credit data and analytics, according to a report by Bloomberg.
The transaction is reportedly expected to close in the first half of 2027, with Octus forecast to generate more than $300m in revenue this year. LSEG expects the acquisition to be earnings-neutral in its first full year before becoming accretive thereafter.
Formerly known as Reorg, New York-based Octus provides financial intelligence and data covering leveraged finance, distressed debt, restructuring and private credit. Permira agreed to invest in the business in 2022.
Octus founder and chief executive Kent Collier will reportedly remain in charge of the company following completion of the acquisition.
LSEG plans to finance the purchase through external debt, taking its leverage towards the upper end of its target range of 1.5 to 2.5 times by the end of 2027.
The acquisition will expand LSEG’s credit data and analytics capabilities as demand for specialist intelligence increases alongside the growth of private credit markets.
It follows LSEG’s $27bn acquisition of Refinitiv, completed in 2021, which significantly expanded the group’s financial data operations beyond its traditional exchange business.
The agreement also comes as LSEG faces pressure from activist investor Elliott Investment Management to accelerate shareholder returns and review its portfolio.
LSEG reported third-quarter constant currency income growth of 8%, exceeding its previous guidance of up to 7.5%, and said it has capacity for an additional £1bn to £1.5bn in share buybacks in 2027.
