London Stock Exchange Group has agreed to buy Octus, a provider of credit data and analysis, for $3.535 billion in cash, according to Reuters and an LSEG announcement on Thursday.

LSEG said it is buying Octus from funds advised by private equity firm Permira and from Octus' management, including founder Kent Collier. Reuters called it LSEG's biggest acquisition since its 2019 deal for Refinitiv, which cost $27 billion.

Octus was founded in 2013 and is based in New York City, the announcement said. It has more than 900 employees, 750 customers and more than 40,000 users. LSEG expects Octus to bring in more than $300 million in revenue in 2026.

Octus employs journalists, analysts and legal experts to cover credit markets, with a focus on companies in financial distress, Reuters reported. LSEG said the deal would make it a leader in data for both public and private credit.

"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.

The deal will be paid for with outside debt, LSEG said. It expects the deal to close in the first half of 2027 if regulators approve it. Collier would keep running Octus inside LSEG's data and analytics division.

LSEG shares were up about 2% in early London trading Thursday, Reuters reported at 2:31 a.m. ET. The shares are roughly flat this year and about 26% below their February 2025 peak, Reuters said, as fears grew that AI could disrupt its data business. The company also raised its 2026 revenue outlook on Thursday.

LSEG has been under pressure from activist investor Elliott, Reuters reported. Reuters also noted that LSEG is its largest customer.

What we know: LSEG has agreed to pay $3.535 billion in cash for Octus, pending regulatory approval.
What we don't: Whether regulators will approve the deal, or how Elliott views it.