OneStream Inc (NASDAQ:OS) is set to go private after agreeing to a $6.4 billion all-cash acquisition by private equity firm Hg Capital, in a deal Wedbush described as a “smart move.”
Under the definitive agreement, OneStream shareholders will receive $24 per share, reflecting a nearly 31% premium to the company’s closing share price on January 5 and a 27% premium to its 30-day volume-weighted average price.
Wedbush analysts said the timing of the transaction aligns with broader trends in the SaaS space, noting that “private equity firms across the globe have been quite active over the past few years with picking up SaaS-based companies.”
Analysts highlighted similar deals, including Thoma Bravo’s acquisition of Verint Systems, Carlyle Group’s majority acquisition of SurePay, and Advent’s purchase of Sapiens, as evidence of the sector’s growing appeal to PE investors.
Hg Capital, which manages over $100 billion in assets, will acquire all outstanding OneStream shares, including those held by KKR-managed funds. General Atlantic will become a significant minority investor alongside Tidemark, a tech investment firm. Wedbush noted that Hg’s experience in enterprise software fits well with OneStream’s business. “This acquisition will fit into Hg Capital’s strategy of acquiring financial software with long-term recurring revenues,” analysts wrote.
Management continuity is a key aspect of the deal. CEO Tom Shea will remain in his role, and the current leadership team will stay in place. Wedbush emphasized that Hg’s involvement should accelerate growth, particularly in AI initiatives. “Hg will help accelerate OS’s AI innovation and scale,” they wrote.
“More private equity firms have pursued public-to-private transactions with valuation gaps persisting as more are deploying capital into businesses that can see operational improvements with new management taking the helm.”
Following the announcement, Wedbush downgraded OneStream to Neutral from Outperform and lowered its price target from $25 to $24, reflecting the agreed acquisition price.