LSEG agrees $3.5 billion Octus deal as Nasdaq, ICE report
LSEG raised its 2026 revenue guidance and agreed to buy credit-data firm Octus, while Nasdaq's recurring revenue reached $3.4 billion.
- LSEG will pay $3.535 billion in cash for Octus and now expects 2026 revenue growth of at least 8%.
- Nasdaq's annual recurring revenue reached $3.4 billion, and solutions made up 79% of net revenue, our calculation.
- ICE put its wealth-advisor tools inside Robinhood-owned TradePMR; Cboe reports Oct. 30.
Nasdaq and the London Stock Exchange Group (LSEG) reported third-quarter results on Oct. 22 as exchange operators lean on data and software. LSEG paired its update with a $3.535 billion cash deal for Octus, while Intercontinental Exchange (NYSE: ICE) widened its reach into wealth management.
LSEG buys credit data and lifts its outlook
LSEG will buy Octus from funds advised by Permira and Octus management, according to its announcement. Octus is expected to generate more than $300 million in revenue in 2026, so the price is about 11.8 times sales, our calculation: $3.535 billion divided by $300 million. LSEG said leverage should sit near the upper end of its 1.5 to 2.5 times target range at the end of 2027.
Total income, excluding recoveries, rose 8.8% organically to £2.41 billion in the quarter, according to LSEG's trading update. The company raised full-year guidance for revenue growth to at least 8%.
The update also referenced Tradeweb's planned purchase of Trumid for about $1.75 billion. That deal belongs to Tradeweb, not LSEG.
Nasdaq grows its recurring base
Nasdaq's solutions revenue rose 17% to $1.17 billion, and annual recurring revenue rose 12% to $3.4 billion, according to its results release. Net revenue was $1.48 billion, up 13%.
Solutions equaled 79% of net revenue, our calculation: $1,172 million divided by $1,481 million. Nasdaq returned $496 million to shareholders in the quarter, our calculation: $173 million in dividends plus $323 million in buybacks. It declared a $0.31 quarterly dividend payable Dec. 18.
ICE links its data to TradePMR
ICE said a web version of ICE Connect Wealth is now accessible inside TradePMR's Fusion platform, according to the announcement. TradePMR, owned by Robinhood Markets, serves 400 RIA firms with more than $50 billion in assets under advisement. Access is limited to eligible advisors.
By the numbers
| Metric | Value | Basis |
|---|---|---|
| Octus price vs. 2026 revenue | About 11.8x | Our calculation |
| Nasdaq ARR | $3.4 billion, +12% | Q3 2026 |
| Nasdaq solutions share of net revenue | 79% | Our calculation |
| LSEG organic income growth | +8.8% | Q3 2026 |
| CME Group revenue | $1.74 billion, +13% | Q3 2026 |
| ICE financials average daily volume | +45% y/y | Q3 2026 |
How we got here
Peers have reported strong quarters. CME Group posted record third-quarter revenue of $1.74 billion on Oct. 21, according to Investing.com. ICE said total financials average daily volume rose 45% year on year, per its quarterly statistics. Nasdaq closed its LeveL Markets purchase in early Q4.
On Oct. 14, SEC trading and markets director Jamie Selway gave remarks on market structure, a debate that shapes how venues compete.
What to watch
Cboe Global Markets reports third-quarter results before the open on Oct. 30. Watch whether it also points to data and recurring revenue.
How we reported this: we read the Nasdaq and LSEG releases, ICE's announcement and statistics, and coverage of CME. The 11.8x, 79% and $496 million figures are our calculations.
Source: www.globenewswire.com