Hg is closing in on a potential take-private acquisition of financial software group OneStream, as private equity firms continue to target listed technology companies trading below their IPO valuations, Bloomberg reports.

OneStream’s shares have fallen about 35% over the past year, giving the company a market value of roughly $4.5bn. The stock rose sharply following reports of advanced talks, reflecting investor expectations of a premium take-private offer.

The Birmingham, Michigan-based company went public in 2024, raising about $563.5m, with shareholders including KKR. Reuters previously reported that OneStream was exploring strategic options, including a possible sale, with Hg among the potential bidders.

Hg manages more than $100bn in assets and has built a large portfolio of enterprise software businesses across tax, accounting, healthcare, and compliance. A deal for OneStream would fit the firm’s strategy of acquiring mission-critical software with long-term recurring revenues.

The talks underscore private equity’s renewed interest in public-to-private transactions, as valuation gaps persist and sponsors deploy capital into businesses where operational improvements can be pursued away from public markets.

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