LSEG raises profit forecast and confirms $3.5bn Octus acquisition

London Stock Exchange operator expands credit data offering amid strong quarterly results

By LineZotpaper

Published22 October 2026

Read Time2 min

LSEG, the operator of the London Stock Exchange, has raised its profit forecast for the second time and confirmed it will acquire credit data specialist Octus in a $3.5bn (£2.6bn) deal. The FTSE 100 firm reported a 9.5 per cent rise in third-quarter gross profit to £2.2bn, driven by higher derivatives fees, and upgraded its pre-tax earnings margin forecast to between 100 and 120 basis points.

The acquisition of New York-based Octus significantly expands LSEG’s fixed income offering, the company said, citing convergence between public and private credit markets. The deal marks a major win for British private equity group Permira, which acquired Octus for just $1.3bn in 2022.

LSEG’s move follows the announcement days earlier that its trading platform Tradeweb will acquire electronic credit trading marketplace Trumid in a $1.8bn transaction. LSEG chief executive David Schwimmer said the Octus deal, alongside the Trumid acquisition and LSEG’s existing scale in liquid credit, positions the company as a global leader in fixed income data and trading.

The takeover is the largest for LSEG since its $27bn acquisition of US data services provider Refinitiv in 2021. LSEG shares rose 2.5 per cent to 9,008p on the news and are up 3 per cent over the past year.

The company’s upgraded profit forecast, from an initial 80-100 basis points to 100-120 basis points, reflects a 16 per cent jump in income from over the counter derivatives fees, contributing to a strong third-quarter performance.

Analysis

Why This Matters

LSEG’s strategic expansion into credit data and trading signals growing consolidation in financial data services
The acquisition bolsters LSEG’s position in fixed income, a less liquid market segment, meeting customer demand for predictive analytics
Improved profit forecasts and strong quarterly results indicate robust demand for exchange and derivatives services

Background

LSEG, the owner of the London Stock Exchange, has been expanding through acquisitions since its 2021 blockbuster purchase of Refinitiv. The Octus deal continues this trend, focusing on credit data and analytics. British private equity firm Permira, which invested in Octus in 2022, stands to benefit from the sale.

Key Perspectives

LSEG: The company sees the acquisition as a key step to become a global leader in fixed income data and trading, leveraging convergence in credit markets. Permira: The private equity group is expected to realize a significant return on its 2022 investment in Octus, as the acquisition price is more than double what it paid. Market Observers: The deal may face regulatory scrutiny given LSEG’s growing dominance in data services, but is likely to strengthen its competitive edge against rivals.

What to Watch

Regulatory approval processes in the UK and US for the Octus and Trumid deals
Integration of Octus’s credit data services into LSEG’s existing offerings
Future earnings reports to see if profit margins sustain at the upgraded forecast level

Sources

LSEG pushes up profit forecast as it confirms $3.5bn Octus swoop · City AM

Checked

11 claims in this story checked against 1 source: 9 supported.

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Partly supportedLSEG has confirmed the $3.5bn Octus acquisition.City AM: “confirmed plans to take on credit data specialist Octus in a $3.5bn (£2.6bn) deal”
SupportedLSEG’s quarterly results were strong, and the Octus deal expands its credit data offering.City AM: ““significantly expands LSEG’s fixed income offering””
SupportedLSEG raised its profit forecast for a second time and confirmed it will acquire Octus.City AM: “LSEG has upped its profit forecast for a second time as the operator of the London Stock Exchange confirmed plans to take on credit data specialist Octus”
SupportedLSEG’s third-quarter gross profit rose 9.5 per cent to £2.2bn, driven by higher derivatives fees.City AM: “The firm also notched up a 9.5 per cent rise in third-quarter gross profit to £2.2bn, driven by a 16 per cent jump in income from over the counter derivatives fees.”
SupportedLSEG upgraded its pre-tax earnings margin forecast to 100–120 basis points.City AM: “LSEG cheered an improvement in its pre-tax earnings forecast to a margin of 100-120 basis points”
SupportedLSEG said the Octus deal significantly expands its fixed income offering, citing convergence between public and private credit markets.City AM: ““Public and private credit markets are converging,” LSEG said”
SupportedPermira acquired Octus for $1.3bn in 2022.City AM: “The deal marks a major win for British private equity group Permira, who acquired the business for just $1.3bn as recently as 2022.”
SupportedLSEG-owned Tradeweb announced plans days earlier to acquire Trumid for $1.8bn.City AM: “The takeover comes just days after LSEG-owned trading platform Tradeweb unveiled plans to acquire electronic credit trading marketplace Trumid in a $1.8bn deal.”
SupportedDavid Schwimmer said the Octus deal, alongside Trumid and LSEG’s existing liquid-credit scale, makes LSEG a global leader in fixed income data and trading.City AM: ““Alongside the acquisition of Trumid’s innovative credit trading services and our existing scale in liquid credit, we are becoming a global leader in fixed income data and trading,” LSEG boss David Schwimmer said.”
SupportedThe Octus takeover is LSEG’s largest since its $27bn Refinitiv acquisition in 2021.City AM: “It marks the biggest takeover by LSEG since the firm’s blockbuster $27bn acquisition of US data services provider Refinitiv in 2021.”
Partly supportedLSEG shares rose 2.5 per cent to 9,008p on the news and are up 3 per cent over the past year.City AM: “LSEG shares rose 2.5 per cent to 9,008p. The stock is up by 3 per cent over the past year.”