EFTA00490387.pdf

From: Lesley Groff <1 To: Ike Groff <I Subject: Re: KKR Agrees to Take Majority Stake in Financial Software Maker OneStream: Deal values the business at north of SI billion Date: Thu, 07 Feb 2019 12:57:12 +0000 Wow super nice! Happy for them!Now it's your turn.), Sent from my iPhone On Feb 7, 2019, at 7:46 AM, Ike Groff <1 > wrote: NICE WORK TOM AND ERNIE!!! CFO JOURNAL KKR Agrees to Take Majority Stake in Financial Software Maker OneStream Deal values the business at north of $1 billion <image001.jpg> Private-equity firm KKR & Co. is making a major investment in financial software maker OneStream Software LLC. PHOTO: ONESTREAM SOFTWARE LLC 0 COMMENTS By Tatyana Shumsky Feb. 7, 2019 5:30 a.m. ET Private-equity firm KKR agreed to take a majority stake in OneStream Software LLC in a deal that values the corporate performance management software maker at more than $1 billion. KKR declined to disclose the amount it invested in the Rochester, Mich., company, but a person familiar with the matter said it was more than $500 million. The firm said the investment was made through its private-equity and growth-equity funds, adding that KKR is OneStream's first external investor. OneStream's software unifies and simplifies financial consolidation, planning, reporting, analytics and financial data quality and can be deployed on premises or through cloud computing. The company competes with Oracle Corp. and SAP SE, as well as more specialized software makers such as such as financial planning software Anaplan Inc. and financial reporting software Workiva Inc. EFTA00490387 OneStream software is used by more than 300 customers, including United Parcel ServiceInc. and Sagent Pharmaceuticals Inc. The company grew its revenue by 137% and expanded its customer base by 66% in 2018, OneStream said. Chief financial officers often buy separate software to tackle specific needs, such as lease accounting or planning. Over time, the cost of operating and maintaining individual systems can become unwieldy, said OneStream Chief Executive Tom Shea. "We're changing that," he said, adding that OneStream enables finance professionals to complete reporting and planning tasks from a single platform. A wave of new players has disrupted and reshaped segments of the enterprise software marketplace in recent years, dethroning legacy systems. Among them are Salesforce.cominc. within the customer relationship management space, and Workday Inc. in human resources, said David Welsh, who heads KICR's technology, media and telecommunications growth-equity group. OneStream is following a similar trajectory in the corporate performance software segment, he said. Mr. Welsh is expected to join OneStream's board once the transaction closes. Former Central Intelligence Agency Director David Petraeus, who is now chairman of the KKR Global Institute, and KKR Principal Jim Miele also are expected to join the board. Write to Tatyana Shumsky at Ike Groff 680 Washington Blvd Stamford, CT 069011 I® <Mnage002.png> This email and any files transmitted are confidential and intended for institutional investors and is not subject to all of the independence and disclosure standards applicable to research reports prepared for retail investors. This electronic communication has been prepared by Tourmaline Partners, LLC for distribution to Tourmaline Partners, LLC ("TOUR") clientele. This communication is not intended for public dissemination and the recipient is prohibited from sharing this information. This communication has been prepared for institutional accounts, as defined within FINRA Rule 4512(c), who (1) are capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; and (2) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons. Any desk commentary may be inconsistent, and reach different conclusions, with other TOUR trading desk material or independent third party research reports. TOUR is under no obligation to bring them to the attention of recipients of this information. This communication is provided for information purposes only and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or financial instrument. TOUR is a registered broker-dealer and a member of FINRA and SIPC. For additional disclosures, please visit httos://www.tourmalinellc.com/email-disclosure EFTA00490388