OneStream to Be Taken Private by Hg Capital in $6.4 Billion Deal
Shares climb toward the $24 offer price as analysts downgrade the software firm, citing limited upside potential post-acquisition.
OneStream, a prominent provider of corporate performance management software, has agreed to be acquired by European private equity firm Hg Capital in an all-cash transaction valued at approximately $6.4 billion. The deal will take the company private less than two years after its initial public offering.
Under the terms of the agreement announced Tuesday, OneStream shareholders will receive $24.00 for each share they own. The offer represents a significant 31% premium to the company's closing price on January 5, 2026, the last trading day before the deal was made public. Following the announcement, OneStream's stock surged to trade just below the acquisition price, reflecting market confidence that the transaction will be completed as planned.
The move triggered a series of rapid-fire downgrades from Wall Street analysts, who adjusted their outlooks to reflect the new reality of a fixed acquisition price. Morgan Stanley downgraded the stock to “Equal-Weight” from “Overweight,” while Mizuho shifted its rating to “Neutral” from “Outperform.” Both firms, along with Needham which moved to a "Hold" rating, reset their price targets to $24.00, aligning with the deal terms. The consensus among analysts is that the valuation is fair and the probability of a competing, superior offer is low, effectively capping the stock's potential.
Founded in 2010, OneStream has established itself as a key player in the enterprise software market. Its platform offers a unified solution for financial consolidation, planning, reporting, and analytics, serving over 1,000 customers globally. For Hg Capital, a specialist investor with a deep portfolio of software and service businesses, the acquisition marks a strategic investment in a market leader with a resilient business model.
Going private will allow OneStream to pursue its long-term strategy and invest in product innovation without the pressures of quarterly earnings reports and public market volatility. The transaction is expected to be financed through a combination of equity and debt and is subject to customary closing conditions, including approval from OneStream shareholders and regulatory clearance.
Analysts at Mizuho noted that the valuation is in line with recent software take-private transactions, suggesting a solid but not extravagant price. The deal highlights a continuing trend of private equity firms deploying capital to acquire public technology companies, seeing value in taking them private to foster growth away from the public eye. According to a report from Private Equity Wire, the move is seen as a logical step for both firms.
Barring any unforeseen regulatory hurdles or the unlikely emergence of a rival bidder, OneStream shareholders are expected to vote on the proposal in the coming months, with the transaction anticipated to close in the second half of the year. Until then, the company's stock is expected to trade closely in line with the $24.00 offer price.