Waystar Considers Sale Amid Declining Market Value, Sources Reveal
Healthcare software firm Waystar is exploring a potential sale, with investment bank Evercore advising on the process, sources say.
Waystar, a prominent healthcare software company known for its payment management solutions for hospitals and physicians, is reportedly exploring strategic options, including a possible sale. According to seven sources familiar with the situation, the company, which recently went public, could potentially revert to private ownership.
The company, based in Lehi, Utah, and Louisville, Kentucky, has enlisted the services of investment bank Evercore to guide them through this exploratory phase. Two sources, preferring to remain anonymous due to the confidentiality of the matter, indicated that the process is still in its early stages and a sale is not guaranteed.
Market Challenges and Strategic Positioning
Waystar's market valuation has seen a significant decline, falling to approximately $4.8 billion following a 24% drop in its share price this year. This dip aligns with a broader downturn in the software sector, prompting the company to consider an auction process to assess current investor interest in software entities.
The company's strategic focus on positioning itself as a technology provider rather than a traditional services business was initially well-received, with shares peaking at $45 in 2025. However, investor sentiment shifted amid concerns that advancements in artificial intelligence could disrupt the software landscape, as noted by Morgan Stanley analysts in a July report.
Background and Stakeholders
Waystar emerged from a 2017 merger between Zirmed and Navicure, two healthcare revenue management companies. The firm's major stakeholders include EQT, the Canada Pension Plan Investment Board (CPPIB), and Bain Capital, which took Waystar public in 2024. EQT holds the largest stake at 13%, followed by CPPIB with 10%, and BlackRock Institutional Trust Company with 8%, according to LSEG data.
Despite the current uncertainties, the potential sale of Waystar could signal a shift in the software investment climate, as stakeholders and potential buyers evaluate the company's future prospects amidst market challenges.
When approached for comments, Waystar, EQT, and BlackRock declined to provide statements, while CPPIB did not immediately respond. Evercore, the advisory bank, also did not comment on the situation.