LSEG to Acquire Octus in $3.535 Billion All-Cash Deal

London Stock Exchange Group announced on October 22, 2026, that it will acquire Octus, a provider of credit intelligence, data, and workflow tools formerly known as Reorg, for $3.535 billion in cash. The deal is financed through external debt and remains subject to regulatory approvals, with completion targeted for the first half of 2027. Octus will operate within LSEG’s Data & Analytics division under current CEO Kent Collier.

Deal Terms and Financial Profile of Octus

The transaction values Octus at a multiple that reflects its scale and growth trajectory. The company is projected to generate between $300 million and $320 million in revenue during 2026, supported by strong double-digit growth and an adjusted EBITDA margin near 40 percent. Octus employs more than 900 people and serves over 750 customers with more than 40,000 users. Revenue has compounded at double-digit rates since 2022.

LSEG stated the purchase will be neutral to adjusted earnings per share in the first full year after closing and accretive thereafter. It will add immediately to organic revenue growth in the Data & Analytics segment and support the group’s 2027 organic subscription revenue growth target of approximately 7 percent. Medium-term EBITDA margin guidance remains unchanged. Net leverage is expected to reach the upper end of the 1.5 to 2.5 times target range by the end of 2027 before returning to normal levels.

Octus derives its data from proprietary sources, including hard-to-access documents that cover public, private, illiquid, and distressed credit. This dataset complements existing LSEG fixed-income products such as IFR, Yield Book, and LPC. The acquisition marks LSEG’s largest since the 2019 Refinitiv purchase valued at roughly $27 billion.

Strategic Context and Market Reaction

LSEG first confirmed it was in talks for an acquisition of approximately $3.5 billion on October 13, 2026. The announcement coincided with the release of third-quarter 2026 results that showed solid growth, prompting the company to raise its full-year 2026 guidance to organic total income growth of at least 8 percent. Industry observers noted the move aligns with increasing demand for specialized private-credit information that resists automated scraping by large language models.

Chief Executive David Schwimmer emphasized the resilience of Octus’s data sources in a period of rapid AI development. The combination creates an integrated platform spanning public and private credit segments, enabling cross-selling and new workflow products for institutional clients. Shares of LSEG rose between 2 percent and 6 percent on the day of the announcement, erasing year-to-date declines reported in several market summaries.

Regulatory filings and approvals remain the principal conditions to closing. Once completed, the integration will focus on product synergies while preserving Octus’s existing leadership and operational structure. LSEG also referenced ongoing fixed-income initiatives, including its earlier Tradeweb and Trumid transaction, as part of a broader expansion in credit markets.