London Stock Exchange Group is considering a bid for Octus that could value it at about $3.5 billion

London Stock Exchange Group has held talks with Octus and its owner, private equity firm Permira, over a possible bid for the New York credit-data firm. People familiar with the matter told Bloomberg on Tuesday, October 13, that a deal could value Octus at about $3.5 billion. Reuters reported the same talks and the same figure.

There is no certainty a deal will happen, and Permira has also held talks with other industry buyers, Reuters reported.

An LSEG spokesperson declined to comment to Reuters, as did Permira. Octus did not respond to a request for comment from Reuters.

In afternoon trading in London, LSEG shares were at 8,310 pence, down 5.1% from Monday's close.

Octus sells banks and investors information on credit markets, focused on companies in financial distress, and employs journalists, analysts and legal experts who use technology to scour regulatory and court filings, Reuters reported. Called Reorg until it rebranded in 2024, the firm says it covers high-yield bonds, leveraged loans and private credit, from performing credit through distress.

LSEG's largest division is already data, not the stock exchange. A purchase would add Octus's reporting on distressed companies and private credit to that business.

Permira bought a controlling stake from Warburg Pincus in 2022 at a valuation of $1.3 billion, and has been planning a sale since last year, Reuters reported. The price now being discussed is about 2.7 times that valuation.