London Stock Exchange Group (LSEG) has agreed to buy Octus, a provider of credit intelligence and analytics, for $3.535 billion in cash.
Octus was founded in 2013 by Kent Collier and is headquartered in New York, with more than 900 employees serving over 750 customers, including hedge funds, investment banks and law firms.
The company specialises in illiquid and distressed credit, providing proprietary data on covenants, deal terms and credit documentation that is used by buy-side firms to source deals, assess risk and manage portfolios.
Octus is expected to generate more than $300 million in revenue in 2026, with an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 40% and double-digit compound revenue growth since 2022.
LSEG said the acquisition would transform its presence in private and illiquid credit markets, which have grown to an estimated $3.5 trillion in size, creating a combined offering that spans the full public and private credit spectrum.
Collier will continue to lead the Octus business following completion, which is expected in the first half of 2027, subject to regulatory approval.
The deal comes alongside a strong set of third-quarter results, with total income excluding recoveries up 8.8% on an organic, constant currency basis to £2.407 billion.
Markets was the standout division, growing 12.5%, driven by elevated trading activity across fixed income, over-the-counter derivatives and equities amid continued geopolitical uncertainty and market volatility.
Subscription businesses, comprising Data & Analytics, FTSE Russell and Risk Intelligence, grew a combined 6.6% in the quarter.
LSEG raised its full-year revenue growth guidance to at least 8.0%, up from a range of 7.0% to 7.5% set at the half-year stage, and expects EBITDA margin expansion of 100 to 120 basis points.
Equity free cash flow guidance was lifted to at least £2.8 billion, from £2.7 billion previously.
The group also highlighted strong momentum in its artificial intelligence products, with 95% of its top 200 customers now using LSEG AI tools and more than two-thirds of its top 50 customers connected to its model context protocol (MCP) servers, which allow AI systems to access its data directly.
LSEG chief executive David Schwimmer said the acquisition of Octus, together with Tradeweb's separately announced deal to buy electronic credit trading platform Trumid for around $1.75 billion, positioned the group as a global leader in fixed income data and trading.
The Octus acquisition will be financed through external debt, and LSEG said it retained capacity for a further £1.0 to £1.5 billion of share buybacks in 2027.
