LSEG to Acquire Octus for $3.5 Billion to Boost Data Analytics
LSEG’s Strategic Acquisition and Market Impact
Acquisition Details and Objectives
Oct 22 (Reuters) – The London Stock Exchange Group on Thursday said it has agreed to acquire financial data group Octus for about $3.54 billion, unveiling a deal meant to strengthen its data analytics capabilities alongside third-quarter results.
Investor Pressure and Market Dynamics
Activist Investor Elliott’s Role
LSEG, which operates the London Stock Exchange and provides data and analytics, has been under pressure from activist investor Elliott. The firm, which disclosed a stake in the group in February, is pushing for portfolio changes and margin improvements as AI affects how investors and businesses trade and consume data.
Elliott did not immediately respond to a Reuters request for comment on the deal. LSEG has previously said that there had been “good, constructive dialogue with Elliott”.
Leadership Perspective
CEO Statement on the Acquisition
“Combining Octus’ leading proprietary data and intelligence with LSEG’s data and analytics business creates a powerful offering for our customers, and further accelerates our growth,” LSEG CEO David Schwimmer said in a statement.
Historical Context and Financial Performance
Previous Major Acquisitions
The deal for Octus is LSEG’s biggest since its $27 billion acquisition in 2019 of Refinitiv, once part of Reuters parent Thomson Reuters, helping LSEG become a major distributor as well as a creator of market data.
Stock Performance and AI Concerns
Shares in LSEG are down roughly 2% so far in 2026 and about 28% below their February 2025 peak over fears that AI could disrupt its financial data business and squeeze margins.
Future Outlook
Revenue Projections
However, the company on Thursday raised its outlook for 2026 revenue, and said it now expects organic total income excluding recoveries to grow at least 8% at constant currencies.
LSEG’s Relationship with Reuters
LSEG is the largest customer of Reuters, which provides news for its Workspace news and data platform and other products.
Reporting Credits
(Reporting by Pushkala Aripaka in Bengaluru, Samuel Indyk and Muvija M in London; Editing by Mrigank Dhaniwala and Janane Venkatraman)
