OneStream Set to Go Private in $24 Per Share Agreement, Analysts Predict Minimal Gains

OneStream Receives $24 Per Share Offer from Hg Capital

On Tuesday, OneStream Inc (NASDAQ: OS) revealed that Hg Capital has proposed to acquire the company at a price of $24 per share.

Analyst Reactions to the Offer

• Scott Berg from Needham downgraded OneStream from Buy to Hold and withdrew his price target.
• Robert Simmons at Rosenblatt Securities shifted his rating from Buy to Neutral, adjusting his price target down from $25 to $24.
• Nick Altmann of BTIG maintained his Buy rating and kept the price target steady at $25.

Needham’s Perspective

According to Scott Berg, the announcement follows prolonged speculation about a potential take-private deal. He believes the proposed valuation is reasonable given OneStream’s current pace of growth.

Berg also noted that KKR & Co Inc (NYSE: KKR), the largest shareholder, was seeking to exit its position. He expressed concerns about the sustainability of OneStream’s revenue growth and suggested that a higher bid is unlikely.

Rosenblatt Securities’ View

Robert Simmons commented that while there could be some modest gains for OneStream’s stock by 2026, the offer price is fair and a better proposal is improbable. He added that General Atlantic and Tidemark will retain minority stakes in the new controlling entity.

Simmons highlighted that KKR invested approximately $500 million in early 2019, valuing OneStream at over $1 billion to support its move to a SaaS model. He also observed that shares of competitors BlackLine Inc (NASDAQ: BL) and Workiva Inc (NYSE: WK) rose after the acquisition news broke.

BTIG’s Analysis

Nick Altmann from BTIG believes the acquisition should reinforce investor confidence in current software company valuations. He pointed out that this marks the third acquisition announcement among publicly traded software firms in the past month.

Altmann noted that these recent deals span various software sectors—including Office of the CFO, Infrastructure, and Vertical SaaS—indicating a broad interest in software valuations across the industry.

Stock Performance Update

As of Wednesday’s publication, OneStream shares had dipped 0.15% to $23.58.

Image: Shutterstock

Related Stock Quotes

• OS (OneStream Inc): $23.57 -0.04%
• BL (BlackLine Inc): $56.20 -0.44%
• KKR (KKR & Co Inc): $129.00 -1.40%
• WK (Workiva Inc): $91.43 -0.01%