Waystar Considers Sale Amid Declining Market Valuation
Healthcare software firm Waystar is exploring a potential sale as its market value drops. Investment bank Evercore is advising on the process.
Waystar, a prominent healthcare software company known for its technology solutions in payment management for hospitals and doctors, is reportedly exploring strategic options, including a potential sale. This move comes two years after the company went public on the New York Stock Exchange. According to sources familiar with the situation, Waystar has engaged investment bank Evercore to assist in the early stages of this exploration.
The Lehi, Utah, and Louisville, Kentucky-based firm has seen its market valuation plummet to approximately $4.8 billion following a 24% decline in its share price this year. This downturn reflects a broader trend affecting the software sector, with investors showing increased caution. Despite initial enthusiasm that saw Waystar's shares rise from $20 to a peak of $45 in 2025, concerns over the impact of advancements in artificial intelligence on software companies have tempered investor confidence.
Strategic Shift and Market Challenges
Waystar has positioned itself as a healthcare software provider, emphasizing its role in automating and managing administrative tasks, rather than relying on human resources. This strategy aimed to capitalize on the higher valuations typically associated with technology firms. However, the recent decline in its stock price has prompted Waystar to reconsider its options.
Sources indicate that the company is evaluating whether investor interest in software businesses is rebounding, potentially through an auction process. However, they caution that plans are not yet finalized, and a sale may not occur.
Background and Ownership
Formed in 2017 from the merger of healthcare revenue management companies Zirmed and Navicure, Waystar's major shareholders include private equity firm EQT, the Canada Pension Plan Investment Board (CPPIB), and Bain Capital. These investors played a significant role in taking the company public in 2024. EQT currently holds the largest stake at 13%, followed by CPPIB with 10% and BlackRock Institutional Trust Company with 8%, according to data from LSEG.
Neither Waystar nor its major investors, including EQT and CPPIB, have commented on the potential sale. BlackRock also declined to provide a statement. The outcome of Waystar's strategic review remains uncertain, as the company navigates the challenges of a volatile market environment.