By Milana Vinn, Amy-Jo Crowley and Valentina Za (Reuters) -Financial software maker OneStream is exploring strategic options including a possible sale, less than 18 months after its stock market debut, according to three people familiar with the matter. OneStream has been working with investment bankers at JPMorgan Chase on its options, the sources said, noting that deliberations are at an early stage and there is no guarantee of any transaction involving the company. Private equity firms including Blackstone and Hg are among the names that the sources said have been studying possible bids for OneStream in recent weeks. OneStream has become vulnerable to a potential takeover offer due to its share-price struggles: it is trading roughly 45% lower than its peak valuation in November 2024, according to LSEG data. On Wednesday, it was trading at around $18.87, giving OneStream a market value of $4.6 billion. The sources all spoke on condition of anonymity to discuss private deliberations. Spokespeople for OneStream did not respond to Reuters' request for comment, while representatives for JPMorgan, Blackstone and Hg declined to comment. OneStream is due to report third-quarter earnings after the market closes on Thursday. Birmingham, Michigan-based OneStream offers software products to help executives report financial statements to regulators and investors, and counts Toyota, UPS, News Corp and General Dynamics as customers, according to its website. First launched in 2012 and boasting AI-integrated financial forecasting resources, OneStream competes with software offerings from larger players such as Oracle, SAP and Workday. It was taken public in July 2024 by then majority owner KKR, as part of a wave of technology offerings on U.S. exchanges. Like many of those listings, though, OneStream has faced challenges maintaining its valuation, with a difficult macroeconomic environment contributing to cooling investor sentiment on growth-oriented tech stocks. With share prices declining, private equity firms have sought to take advantage. These buyers like software companies for their recurring revenue and ability to scale them through acquisitions. Recent take-private activity in the financial software space includes Thoma Bravo’s $2 billion acquisition of restaurant-focused software provider Olo in September, and TPG and Corpay’s $2.2 billion purchase of fintech firm AvidXchange, announced last month. Reuters also reported last week that SAP had made a formal offer to acquire financial software firm Blackline for $4.5 billion in the summer, and was considering whether to submit a new bid. (Reporting by Milana Vinn in New York, Amy-Jo Crowley in London, and Valentina Za in Milan; Editing by David French and Deepa Babington)
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