Waystar, whose software helps hospitals and physicians manage payments, is exploring its options, including the possibility of a sale to return to private ownership. This review comes two years after the company went public on the New York Stock Exchange.
Details of Negotiations and Available Options
Waystar, based in Lehi, Utah, and Louisville, Kentucky, has turned to Evercore for advisory in this process. Two sources familiar with the matter stated that this process is in its early stages. Barclays is also advising Waystar in this regard. It is worth noting that these plans may change, and a sale may not materialize.
Market Reaction to the News
Following the news, Waystar's stock rose by more than 8%. This increase somewhat compensates for a significant decline that had affected nearly a quarter of the company's market value this year (as of Monday). With the stock price increase on Tuesday, the company's market value reached approximately $5.2 billion.
The auction process could help gauge investor willingness to return to software businesses. Waystar has sought to position itself as a healthcare software company that provides technologies for automating and managing administrative tasks, rather than being recognized as a healthcare services business that is more reliant on human resources. This strategy is designed to achieve higher valuations typically associated with technology companies.
Initially, investors welcomed this story, driving the stock price from $20 to a peak of $45 in 2025, but over time, concerns about the impact of advancements in artificial intelligence on software companies increased pressure on the stock. Morgan Stanley analysts noted in a report in July that these concerns have affected the market.
Waystar was established in 2017 from the merger of two healthcare revenue management companies, Zirmed and Navicure. The company's largest backers include EQT Investment, the Canada Pension Plan Investment Board, and Bain Capital, which took it public in 2024. According to LSEG data, EQT remains the largest shareholder with a 13% stake, followed by CPPIB with 10% and BlackRock Institutional Trust with 8%.
These companies have not responded to requests for comment. Currently, the future of Waystar and whether these sale options will materialize remains uncertain.
