Hg Capital's $6.4bn Acquisition of OneStream
- Feb 25
- 5 min read
By Edoardo Roveda and Cooper Wu (UCL); Sophie Zhang, Dominic Alino, Jordan Zhao and Joey Zhang (Columbia University)
Photo: Slava Denisov (Unsplash)
Overview of the deal
Acquirer: Hg Capital
Target: OneStream Inc.
Implied Equity Value: $24 per share
Total Transaction Size: $6.4 billion
Closing Date: Expected first half of 2026
Target Advisor: Wilson Sonsini Goodrich & Rosati (financial)
Acquirer Advisor: Information not publicly available, N/A
Hg Capital’s acquisition of OneStream marks a significant private equity take-private buyout in the enterprise software space, valuing the company at approximately $6.4 billion in an all-cash transaction. The offer, which gives OneStream shareholders $24 per share—a 31% premium over the company's share price before the announcement—reflects faith in the long-term prospects of the business despite recent difficulties in the public market. OneStream was established as a unified finance platform that automates financial close, consolidation, reporting, planning, and forecasting. Since then, it has extended its AI-enhanced tools for Office of the CFO teams around the world. In order to facilitate operational and product investments targeted at AI-enabled corporate finance leadership, HG's strategic rationale focuses on scaling market adoption away from the demands of quarterly public reporting and expediting OneStream's innovation roadmap. The purchase also reflects the need for mission-critical SaaS assets with recurring income in the private market. However, there are still long-term execution risks associated with competition from major industry leaders in enterprise financial software, such as SAP, Workday, and Oracle.
Company Details (Acquirer - Hg Capital)
Hg Capital is a London-based private equity firm specialising in technology and software investments across Europe and North America. The firm focuses on growth-oriented software and technology companies, aiming to scale operations and drive digital transformation with operational support and capital.
Founded: 2000
Headquartered: London, United Kingdom
CEO: Steven Batchelor
Number of employees: 430
Market Cap*: £1,847m
EV: £2,240m
LTM Revenue: N/A
LTM EBITDA: N/A
LTM EV/Revenue: N/A
LTM EV/EBITDA: N/A
Recent Transactions: AuditBoard ($3bn), Visma ($12.2bn buyout)
*As of 09/02/2026
Company Details (Target - OneStream Inc.)
OneStream is a leading AI finance management platform that combines core financial functions and broader data under a single platform. The Digital Finance Cloud arm of OneStream offers an encompassing and robust view of an entire enterprise, allowing leaders to make timely adjustments to operations. This Digital Finance Cloud platform serves over 1700 customers, including 18% of the Fortune 500.
Founded: 2012
Headquartered: Birmingham, Michigan/United States
CEO: Tom Shea
Number of employees: 1600+
Market Cap*: $5.76 Billion USD
EV: $3.8 billion USD
LTM Revenue: $595 million USD
LTM EBITDA: $21.5 million USD
LTM EV/Revenue: 6.4X
LTM EV/EBITDA: 176.7X
*As of 09/02/2026
Projections and Assumptions
Short-Term Consequences
In the immediate aftermath of Hg Capital’s acquisition, OneStream will transition from a publicly listed entity to a privately held company, fundamentally altering its operating and governance environment. The removal of quarterly earnings pressure is expected to allow management to refocus on long-term strategic initiatives, particularly investment in AI-driven finance automation, product innovation, and customer experience enhancements. Short-term operational disruption should be limited, as existing senior management is expected to remain in place, ensuring continuity for enterprise customers and partners.
From a financial standpoint, the take-private structure may initially increase leverage at the holding company level, which could place greater emphasis on cash flow discipline, cost optimisation, and prioritisation of high-return growth initiatives. Certain public-company costs, such as regulatory reporting, investor relations, and compliance expenses, are likely to be eliminated, partially offsetting transaction-related costs and interest expenses. Internally, OneStream may also undergo selective organisational restructuring as Hg aligns incentives, performance metrics, and operational processes with private equity ownership standards.
In parallel, General Atlantic and Tidemark’s continuation as minority shareholders is expected to stabilise the transition period and preserve strategic alignment. However, short-term uncertainty may arise among employees and customers regarding future product direction, pricing strategies, and acquisition priorities. Overall, the first year post-acquisition is likely to be characterised by strategic recalibration rather than aggressive expansion, laying the groundwork for longer-term value creation under private ownership.
Long-Term Upsides
In addition to the short-term, the removed pressure resulting from the takeover also has long-term upsides. In particular, relief from valuation compression and quarterly earnings allow for greater investment in research, expanding growth cycles, and allowing for restructuring to create a more efficient structure. Combined with the growing AI market, OneStream’s innovation and integration in the field of AI is able to be catalyzed through the acquisition by Hg. Moreover, Hg’s acquisition allows OneStream greater access to resources through this field: 100 specialists, as well as an existing AI incubator structure, will further expedite this process. Finally, talent recruitment and accelerated add–on acquisitions that are more difficult to pursue under public scrutiny become available.
As well, many of the general benefits of integration with a larger company apply in this case. Streamlined product leadership within Hg Capital can assist integration of Generative AI at a renewed pace within financial teams, for instance. Within a company’s analytic systems, as well as ERP, notably, OneStream allows for the possibility of automated data integration following Hg’s capital’s acquisition. The overall effect of this is long-term upside in allowing Hg to become a leader in their field, outpacing older industry players – especially considering Hg Capital’s global presence.
Risks and Uncertainties
Despite having a signed board‑approved merger agreement, the deal remains subject to antitrust and other regulatory clearances. Competition authorities may scrutinize market concentration in corporate performance management and Office of the CFO software, particularly given Hg’s sizable existing portfolio in this niche. Although KKR has already approved the transaction, there is still a risk that regulators could erode the deal or cause the take‑private to lapse beyond the anticipated closing window (the first half of 2026). A shift in market conditions, such as a sharp downturn in enterprise software valuations, tighter financing markets, or a slowdown in AI‑driven CFO tech spending, could also exacerbate concerns about overpaying with the agreed 31% premium.
Post‑closing, Hg must integrate a growth‑oriented public company into a private‑equity portfolio, which creates consolidation risk around aligning geographically dispersed teams, management incentives, and corporate cultures, especially as OneStream has scaled rapidly since its 2024 IPO. Moreover, Hg may overestimate revenue synergies from cross‑selling across its Office‑of‑the‑CFO investments or underestimate the cost and complexity of continuing AI product innovation, global go‑to‑market expansion, and platform unification. The full cash consideration and relatively high valuation increase pressure to deliver aggressive growth and margin expansion, which could prove unrealistic if macro conditions/competitive dynamics worsen. Lastly, although the deal process is supported by long‑standing financial sponsors, any rushed elements (including responses to market volatility, competitor interest in similar assets, or potential regulatory changes) could become due diligence gaps, potentially emerging as value‑destructive issues only after the OneStream is taken private.
“Today marks a pivotal moment for OneStream and our vision to be the operating system for modern Finance. ” - Tom Shea, CEO of OneStream