EXCLUSIVE KKR-backed OneStream Software hires Morgan Stanley to lead U.S. IPO – sources

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Nov 9 (Businesshala) – OneStream Software, which is backed by private equity firm KKR & Co., has hired consultants to help prepare for an initial public offering (IPO) in New York, which will cost the software maker $10 billion, said people familiar with the matter.

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Rochester, Michigan-based OneStream, which makes software tools and solutions designed for chief financial officers (CFOs) of companies, has acquired investment bank Morgan Stanley (Ms. Sal, sources said.

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Earlier this year, OneStream raised funding from a group of investors including D1 Capital Partners and Tiger Global Management at a valuation of $6 billion. At the time, OneStream indicated that it plans to go public later.

Sources said the software firm is expected to nearly double its valuation in 2022 at the time of its floatation.

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The sources requested anonymity because while discussions were confidential, the timing and size of the deal was subject to market conditions and could change.

Morgan Stanley and KKR declined to comment. OneStream did not immediately respond to requests for comment.

During the pandemic, demand for software tools created by companies like OneStream jumped as companies accelerated digital transformation and demanded tools that make forecasting and financial planning more efficient.

OneStream said its annual recurring revenue (ARR), a key metric for software firms, doubled in the first half of 2021.

Launched in 2010, OneStream helps CFOs prepare financial statements and report to regulators and investors. On its website, the company says it also helps organizations with planning, budgeting and forecasting, among other things.

Its major clients include Toyota Motor Corp, United Parcel Service (UPS), News Corp and General Dynamics. KKR bought a majority stake in OneStream in 2019 at a valuation of over $1 billion.

Reporting by Anirban Sen in Bengaluru and Crystal Hu in San Francisco Additional reporting by Chibuike Oguh in Berlin Editing by Mark Potter

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