LSEG considers bid for Octus financial data group, sources say

LSEG Mulls Multi-Billion Dollar Bid for Octus Financial Data Group

Potential Acquisition and Market Implications

By Amy-Jo Crowley

LSEG's Interest in Octus

LONDON, Oct 13 (Reuters) - The London Stock Exchange Group has held talks with Octus and its private equity owner Permira over a possible bid for the New York-headquartered financial data provider, two people familiar with the matter told Reuters.

Valuation and Deal Uncertainty

London-based Permira is working with advisers to evaluate interest in Octus, the people said, adding that there is no certainty a deal with LSEG will materialise. A deal is expected to value the data provider at around $3.5 billion, one said.

Official Responses

A spokesperson for LSEG, whose shares dipped as much as 2.7%, declined to comment. 

Permira declined to comment. Octus did not respond to a request for comment.

Background on Octus and Permira

Ownership and Sale Plans

Permira, which has been planning a sale of Octus since last year, has also held talks with other potential industry buyers, one of the people said. It acquired a controlling stake in Octus at a valuation of $1.3 billion from Warburg Pincus in 2022. 

Octus' Business Focus

Octus provides information on credit markets, with a focus on companies in financial distress, for banks and investors. It employs journalists, analysts and legal experts, using technology to scour regulatory and court filings. 

Industry Context and Competitive Landscape

Dealmaking Trends in Data Analytics

A potential Octus transaction, if it went ahead, would mark a further uptick of dealmaking in the data analytics sector, despite a ​selloff in listed stocks earlier this year.  

YipitData, backed by investors including Carlyle Group, is exploring a sale that could value the data analytics provider at more than $2.5 billion, while Vista Equity Partners is exploring a sale of private markets data provider Allvue. 

Pressure on LSEG and Reuters Relationship

LSEG has been under pressure to improve its performance from activist investor Elliott Management, which disclosed a stake in the exchange operator in February. 

LSEG is the largest customer of Reuters, which provides news for its Workspace news and data platform and other products. 

Reporting Credits

(Reporting by Amy-Jo Crowley in London; Additional reporting by Milana Vinn in New York and Tommy Reggiori Wilkes in London; Editing by Anousha Sakoui, Elisa Martinuzzi and Alexander Smith)