OneStream's Big Move: Going Private to Boost AI in Finance

OneStream, a finance software company, is making a major shift. It's going private in a deal worth $6. 4 billion. The company's CEO, Tom Shea, sees this as a way to speed up their plans for AI in finance. He believes the next few years will be crucial in defining AI's role in this field. The deal involves Hg, a private equity firm, as the main buyer. General Atlantic and Tidemark will also invest but in smaller amounts. This change is expected to happen by mid-2026, but it needs approval from regulators first. OneStream went public less than two years ago, in July 2024. At that time, it was valued at around $4. 6 billion. However, being a public company hasn't been easy. The company faced challenges like market conditions, growth concerns, and questions about AI's real value in finance. Despite these issues, OneStream reported $568 million in annual recurring revenue last year. They're also expanding their AI tools, with AI bookings up about 60% in the third quarter.Shea sees this buyout as a chance to focus more on AI innovation without the pressure of quarterly reports. He believes Hg's long-term perspective will help OneStream invest more in AI. OneStream is also changing its leadership to match its AI goals. John Kinzer, a former CFO of HubSpot, is now the interim CFO. He believes AI's value comes from structured data and expertise, not just large language models. Kinzer is focused on positioning the company for sustained growth. Shea and Kinzer are working closely during this transition. Shea is looking for a permanent CFO who can help scale the company to $1 billion in revenue and beyond. Despite the big changes, Shea stresses that OneStream's mission and independence remain the same.