Hg Capital Acquires OneStream in $6.4 Billion Deal; Shares Rise 28%
Hg Capital, a prominent buyout firm, has reached an agreement to acquire OneStream, a financial software provider, for $6.4 billion. This all-cash deal was announced on January 6, 2025. Shareholders of OneStream will receive $24 per share, which represents a 31% premium over the company’s closing stock price on January 5, 2025. Following the announcement, OneStream’s shares surged by over 28% in afternoon trading.
Details of the Acquisition
The acquisition marks a significant step in the ongoing recovery of global mergers and acquisitions despite prevailing uncertainties surrounding U.S. tariff policies and geopolitical issues. OneStream, headquartered in Birmingham, Michigan, specializes in software solutions that aid companies in reporting financial statements to stakeholders. Notably, its client roster includes major firms such as Toyota, UPS, News Corp, and General Dynamics.
Investors and Strategic Partnerships
- Hg Capital is not the only player in the landscape; General Atlantic and Tidemark will join as minority investors.
- This collaboration aligns with OneStream’s strategy to boost its innovation in artificial intelligence.
Company Background
Founded in 2012, OneStream focuses on providing AI-driven financial forecasting tools. It competes with other significant players in the enterprise software sector, including Oracle, SAP, and Workday.
Market Performance
OneStream went public in July 2024 under KKR’s majority ownership, amid a significant wave of technology listings on U.S. exchanges. However, the company has struggled to maintain its valuation amid a challenging macroeconomic environment that has dampened investor enthusiasm for growth-oriented tech stocks.
| Metric | Value |
|---|---|
| IPO Share Price | $26 |
| Valuation at IPO | Nearly $6 billion |
| Market Capitalization (as of Jan 5, 2025) | $4.48 billion |
J.P. Morgan Securities served as the financial adviser for OneStream in this transaction, which is anticipated to conclude in the first half of 2026. As the acquisition unfolds, it promises to enhance OneStream’s capabilities, accelerating its growth and innovation strategies.
