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PE firm Hg Capital in talks to buy US fintech company OneStream
Hg Capital is in advanced talks to acquire OneStream, a financial software company based in Birmingham, Michigan, according to sources familiar with the matter.
A deal could be announced in the coming days, though the timing or outcome may still change.
OneStream shares rose 3.8% on December 6, in New York, valuing the company at US$4.5 billion, but the stock is down 35% over the past year.
The company raised US$563.5 million in its 2024 IPO, while Reuters previously reported that OneStream and its shareholders were considering strategic options, including a sale.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
OneStream’s public market struggle suggests SaaS valuations remain compressed for mid-scale Enterprise Performance Management (EPM) vendors
- Shares are down 35% over the past year. Investors doubt mid-scale enterprise software, even with steady results. The company posted ~26% year-over-year revenue growth in Q2 2025 and $29.4M free cash flow 1. Net dollar retention reached 118% (how much existing customers spend over time) 2.
- The US$4.5B implied valuation equals about 7.7x its ~$586M projected 2025 revenue 1. That sits above its recent trading multiple but below the 8–8.5x Annual Recurring Revenue (ARR) at IPO 2.
- Hg Capital has interest. The bet leans on 1,700+ customers across Fortune 500 accounts 23 and 98% gross retention (the share of customers retained) 2. Growth could lift under private ownership. Revenue mix is shifting from license at $6.0M in Q2 2025 to subscription at $133.6M 1.
Financial planning vendors and system integrators can target OneStream’s enterprise accounts amid potential ownership transition
- Customers cover retail, transportation, insurance, and financial services 4. Named accounts include Costco, UPS, Zurich, and First Citizens Bank 4. Competitors like Workday, Anaplan (a business planning software provider), and Oracle may try to displace the platform during any transition.
- System integrators (consulting firms that implement and connect enterprise software) can package services around integration work. Many customers link to Enterprise Resource Planning (ERP) systems such as Oracle E-Business Suite, SAP S/4HANA, and Microsoft Dynamics 2.
- Data platform vendors like Snowflake (a cloud data warehouse) and Databricks (a data and AI platform) can pitch chief financial officers (CFOs) on complementary data integration. The Solution Exchange is a marketplace of 90+ add-on applications 2. It provides multiple integration points.
