KKR Buys Majority Stake in OneStream Software

The company said the deal brings its valuation to $1 billion.
Lauren MuskettFebruary 7, 2019
KKR Buys Majority Stake in OneStream Software

Corporate performance management software provider OneStream Software announced it has agreed to receive a significant investment from a combination of KKR’s private equity and growth equity funds. The companies did not disclose the financial terms of the deal, but The Wall Street Journal reported KKR invested more than $500 million and acquired a majority stake in OneStream.

In a statement, the company said that it has achieved nearly 500% growth over the last three years while maintaining strong profitability and that the investment brings its valuation to over $1.0 billion.

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“(This deal) really comes down to the trajectory we’re on,” OneStream CEO Tom Shea said. “We have this bootstrap mentality … but you get to a certain point where you want to push the goalpost way down the field. The way you see technology companies evolving, it’s rare to go from bootstrap to an (initial public offering). This helps us scale the business and grow it to another level.”

Under the terms of the deal, David Petraeus, Dave Welsh, and Jim Miele will join OneStream’s board of directors. OneStream said it was the first investment by an outside investor in the company.

OneStream said the funds will be used to accelerate investments in sales, marketing, product development, and customer success.

OneStream was founded in 2010. Its customers include UPS, Sagent Pharmaceuticals, Post Holdings, Fruit of the Loom, Carlyle Group, and Melrose. Its competitors include Oracle and SAP SE.

Wells Fargo Securities served as its financial advisors.

“We have done this in a customer-centric way, in which every customer is a reference and has a platform to accelerate their digital finance transformation at their own pace,” Shea said. “We are pleased to have an experienced investor like KKR back our platform and our vision for continued growth.”

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