London based Private Equity Firm Hg to Acquire OneStream

Core Insights - Hg has acquired OneStream for an equity value of approximately $6.4 billion, marking a return to private ownership just 17 months after its IPO, reflecting changing dynamics in the tech sector amid economic uncertainties [1][3] - OneStream provides an AI-enabled platform for enterprise finance management, serving major clients like Toyota and UPS, and competes with industry leaders such as Oracle and SAP [2][9] Company Overview - OneStream, founded in 2010, has evolved from Oracle's Hyperion technology into a unified system for streamlining financial processes for large organizations [3] - The company went public in July 2024 with an initial valuation near $6 billion but saw its market cap decline to about $4.48 billion by early January 2026 due to softer macroeconomic conditions [3] Acquisition Details - Hg will become the majority voting shareholder, with minority stakes held by General Atlantic and Tidemark, while KKR exits its position entirely [5] - The acquisition offers OneStream shareholders $24 per share, representing a 31% premium over the January 5, 2026 closing price and a 27% uplift from the 30-day volume-weighted average [5] Strategic Implications - Leadership continuity is assured with CEO Tom Shea remaining in charge, allowing OneStream to focus on AI-driven innovations without public market pressures [6] - Hg's involvement is expected to enhance OneStream's growth trajectory and AI capabilities, aligning with broader trends in fintech where AI integration is driving consolidation [6][8] Market Response - Following the announcement, OneStream shares surged over 28%, indicating a positive market reaction [7] - Analysts view the acquisition as a vote of confidence in OneStream's platform, suggesting it could reshape the competitive landscape and enable the company to capture more market share [9]