British private equity firm Hg is in advanced negotiations to acquire OneStream Inc., the enterprise financial software company, in a take-private deal valued at approximately $4.3 billion. The transaction, which could be announced within days, would represent one of the most significant private equity buyouts in the financial technology sector to begin 2026.

OneStream shares surged as much as 22% in premarket trading on Tuesday following reports of the advanced discussions, briefly touching their highest level in months. The stock had fallen roughly 35% over the past year amid broader software sector headwinds and investor skepticism about growth-stage enterprise software valuations.

A Premium Exit for a Young Public Company

The Birmingham, Michigan-based company went public just 18 months ago in July 2024, backed by private equity giant KKR. The potential acquisition price values OneStream at approximately six times its projected 2026 revenue, a premium that reflects confidence in the company's long-term positioning in the enterprise financial software market.

"This valuation signals that sophisticated investors see significant runway in the enterprise finance transformation space," said Katherine Bristow, a software analyst at Morgan Stanley. "OneStream sits at the intersection of financial planning, regulatory reporting, and AI-enabled analytics—all areas seeing accelerated enterprise spending."

What OneStream Does

OneStream develops what the industry calls "corporate performance management" software—tools that help large enterprises handle financial consolidation, planning, budgeting, forecasting, and regulatory reporting. The company's platform competes with legacy systems from Oracle and SAP, as well as newer entrants like Anaplan (now owned by Thoma Bravo) and Workday's financial planning tools.

The company's client roster reads like a Fortune 500 directory: Toyota, UPS, General Dynamics, and News Corp all rely on OneStream's platform to manage their financial operations. This blue-chip customer base represents both the company's key strength and its main attraction for private equity buyers.

"Enterprise software with sticky, mission-critical customer relationships is exactly what private equity has been hunting for in this market environment."

— David Chen, Partner at Technology Crossover Ventures

Hg's Enterprise Software Empire

London-based Hg has built a reputation as one of the most aggressive acquirers of enterprise software and data businesses globally. The firm manages more than $70 billion in assets and has assembled a portfolio that includes dozens of vertical software companies across tax, legal, financial services, and healthcare sectors.

For Hg, OneStream would fit neatly into an existing portfolio of finance and accounting software investments. The firm has a track record of acquiring companies, investing in product development and go-to-market expansion, and either selling to strategic acquirers or taking companies public at significantly higher valuations.

Why Go Private Now?

The decision to explore a sale comes at a challenging moment for growth-stage software companies in the public markets. Rising interest rates in 2024 and early 2025 compressed valuations across the sector, while investors increasingly demanded profitability over growth at any cost.

For OneStream's management team, going private could provide the flexibility to invest in product development and sales expansion without the quarterly pressure of public market expectations. Private equity ownership often allows software companies to pursue longer-term strategic initiatives that might temporarily impact margins.

Several analysts noted that the timing also reflects broader M&A dynamics. With interest rates potentially declining later in 2026 and private equity firms sitting on record levels of uninvested capital—estimated at more than $2 trillion globally—deal activity is expected to accelerate significantly this year.

Competitive Dynamics

The enterprise financial software market is undergoing a significant transformation as companies modernize legacy systems built decades ago. The shift to cloud-based platforms, combined with growing demand for AI-enabled analytics and real-time reporting capabilities, has created opportunities for challengers like OneStream to capture market share from incumbents.

However, competition is intensifying. Workday has expanded aggressively into financial planning, while Oracle and SAP have modernized their cloud offerings. Microsoft's Power Platform is also emerging as a competitive threat for certain use cases.

Market Positioning

  • OneStream's edge: Purpose-built platform for complex financial consolidation
  • Key challenge: Competing with well-resourced incumbents with broader enterprise relationships
  • Growth driver: AI-enabled analytics and regulatory reporting automation
  • Customer profile: Large, complex enterprises with sophisticated financial operations

What Happens Next

Sources familiar with the negotiations cautioned that while discussions are advanced, final terms are still being negotiated and the deal could still fall apart. Private equity acquisitions of public companies require extensive due diligence, financing arrangements, and shareholder approval processes.

If completed, the acquisition would likely close in the second quarter of 2026, subject to regulatory approval and customary closing conditions. OneStream shareholders would receive a cash payment for their shares, ending the company's brief run as a publicly traded entity.

For investors watching the enterprise software sector, the potential deal offers a clear signal: despite the recent valuation compression, high-quality software businesses with sticky customer relationships and recurring revenue remain attractive targets for well-capitalized acquirers willing to take a long-term view.

Representatives for Hg declined to comment on the negotiations. A spokesperson for OneStream did not immediately respond to requests for comment.