The London Stock Exchange Group (LSEG) has confirmed it is in talks to acquire private equity firm Permira’s financial data provider Octus for approximately $3.5 billion, aiming to significantly bolster its fixed-income analytics and private-market data offerings.
📌 Key Numbers & Acquisition Highlights:
• $3.5 Billion Valuation: Up significantly from the $1.3 billion valuation when Permira acquired its controlling stake from Warburg Pincus in 2022.
• $145 Million Projected 2026 EBITDA: Earnings before interest, taxes, depreciation, and amortization are forecast to reach ~$145M this year and rise to roughly $200 million in 2027.
• 4.7% LSEG Stock Dip: Shares fell 4.7% following the announcement, bringing LSEG’s market capitalization to $55.8 billion.
• 12x–14x EV/Sales Multiples: Analysts note that comparable data transactions trade at 12–14x revenue, making the deal accretive to LSEG’s group revenue growth despite potential near-term EPS dilution.
💡 Strategic Impact: Backed by pressure from activist investor Elliott Management, LSEG’s purchase of Octus expands its proprietary credit intelligence client base to private-market general partners, creating cross-selling synergies with its Tradeweb and Yield Book platforms.