Hg Capital has agreed to acquire financial-software provider OneStream in an all-cash transaction that values the company at about $6.4 billion, sending OneStream shares up roughly 28% on the announcement.
The offer prices OneStream at $24 per share — about a 31% premium to its close the day before — and converts a public cloud software name back into private hands less than two years after its Nasdaq debut.
The deal and the specifics
Under the agreement, private equity firm Hg will buy the company for $24 a share in cash. Private-equity firm General Atlantic and investment firm Tidemark are expected to take minority stakes alongside Hg. J.P. Morgan Securities served as OneStream’s financial adviser. The companies said the transaction is expected to close in the first half of 2026.
OneStream, based in Birmingham, Michigan, launched in 2012 and went public in July 2024 under majority ownership by KKR. It builds a unified Digital Finance Cloud used by large organizations to consolidate financial reporting, planning and forecasting — and increasingly layers in AI-driven forecasting and automation tools. Customers listed on the company site include Toyota, UPS, News Corp and General Dynamics.
Why private equity moved in
The move fits a broader pattern: mid-sized, subscription-driven software companies have become attractive targets for buyout shops hunting steady recurring revenue and the chance to scale AI investments outside the pressure of public markets. OneStream’s platform competes with financial modules from giants like Oracle, SAP and Workday, but as a focused product it can be easier for an investor to double down on AI features and go-to-market expansion without quarterly market scrutiny.
Hg framed the deal as a way to accelerate OneStream’s AI innovation and scale. That strategic focus echoes trends in enterprise tech where bespoke AI models and tooling are becoming differentiators — a push similar to developments seen elsewhere in the industry, from Microsoft’s in-house models to consumer-facing agentic features in other platforms (Microsoft MAI-Image-1, Google’s AI Mode agentic booking features).
A public-company chapter cut short
OneStream’s IPO debut in mid-2024 priced shares at $26, giving the company an initial market value near $6 billion. But like many growth-oriented tech names, it struggled to maintain that valuation amid a tougher market for software stocks and macroeconomic headwinds. By the time Hg’s bid arrived, the company’s market capitalization had fallen below the IPO-era peak.
Insider trades drew attention
The buyout announcement also shone a light on recent insider activity. According to SEC filings reported by other outlets, Chief Revenue Officer Ken Hohenstein exercised and sold 40,000 options on Dec. 16, 2025, for roughly $688,400. That trade — executed at about $17.21 per share in mid-December — matched a pattern of similar option exercises and, the filings suggest, was conducted under a pre-arranged plan intended to avoid trading on material nonpublic information. Still, such insider moves often prompt extra scrutiny when a takeover follows soon after.
What this means for investors and customers
For public shareholders who stick through the close, the deal effectively caps upside at $24 per share, assuming the transaction completes as expected. For OneStream’s customers and sales pipeline, the immediate effect will likely be modest: enterprise software contracts and roadmaps typically continue under new owners, and private equity buyers often invest to expand product capabilities and sales reach.
Hg’s bet is a familiar one: buy a recurring-revenue software business, invest behind product and AI, and aim to increase scale and profitability away from the quarterly glare. Whether that playbook delivers a stronger OneStream — and a healthy return for the new investors — will become clearer as Hg outlines its post-close plans.
The companies expect to complete the transaction in the first half of 2026, after which OneStream will leave the public markets and operate as a privately held business.