Why Is OneStream Stock Soaring Over 15% Premarket Today?

• PE firm Hg Capital is in advanced talks to acquire OneSteam, Bloomberg reported.
• OneStream, which went public mid-last year, has a market cap of $4.5 billion.
• OS stock is down by over 10% from its IPO price in July.

Shares of OneStream Software, Inc. rose more than 15% in early premarket trading on Tuesday after a report said the KKR-backed company is in advanced talks over a potential buyout.

London, England-based private equity firm Hg Capital is looking to acquire OneStream and take the company private, Bloomberg reported late Monday, citing anonymous sources.

Terms of the transaction were not disclosed in the report, which said that the deal could be announced in the coming days. 

Birmingham, Michigan-based OneStream offers a SaaS-based enterprise platform that handles and refines various finance processes in an organization. It has over 1,700 customers — including 18% of the Fortune 500 — and subscription revenue accounts for over 90% of the company’s total sales. 

Founded in 2021, OneStream went public on Nasdaq in July last year. Although revenue has grown steadily by 20% over the past few quarters and net loss has shrunk, the stock has performed poorly.

OS stock is down by over 10% from its IPO price, and the company’s market cap was $4.5 billion as of the last close.

On Stocktwits, retail sentiment for the ticker dipped to ‘bearish’ as of early Tuesday, from ‘neutral’ the previous day. 

Private equity firms have been very active lately in taking middle-market software and SaaS companies private, with firms like Thoma Bravo dominating the deals category. Notable deals last year included the acquisitions of Dayforce and Verint Systems by Thoma Bravo, and that of Smartsheet by Vista Equity Partners and Blackstone.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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