50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

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

Published 11/09/2021, 12:40 PM
Updated 11/09/2021, 12:51 PM
© Reuters. FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo
GD
-
MS
-
UPS
-
TM
-
NWSA
-
KKR
-

By Krystal Hu and Anirban Sen

(Reuters) - OneStream Software, which is backed by private equity firm KKR & Co (NYSE:KKR), has hired advisers to help it prepare for an initial public offering (IPO) in New York that could value the software maker at over $10 billion, people familiar with the matter said.

Rochester, Michigan-based OneStream, which builds software tools and solutions designed for chief financial officers (CFOs) of companies, has tapped investment bank Morgan Stanley (NYSE:MS) to lead preparations for a stock market launch that is expected to happen early next year, the sources said.

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

The software firm is expected to nearly double its valuation at the time of its flotation in 2022, the sources said.

The sources, who requested anonymity as the discussions were confidential, cautioned the timing and size of the deal were 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 built by companies such as OneStream boomed as companies accelerated digital transformations and sought tools that make forecasting and financial planning more efficient.

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

© Reuters. FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo

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

Its prominent customers include Toyota Motor (NYSE:TM) Corp, United Parcel Service (NYSE:UPS), News Corp (NASDAQ:NWSA) and General Dynamics (NYSE:GD). KKR bought a majority stake in OneStream in 2019 at a valuation of over $1 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.