Waystar Considers Sale Amid Declining Valuation, Engages Evercore
Waystar explores a potential sale, engaging Evercore as adviser, amidst a 24% share price drop.
Waystar, a prominent healthcare software provider, is reportedly exploring strategic options that include a potential sale. This move comes just two years after the company made its debut on the New York Stock Exchange. According to seven sources familiar with the matter, Waystar has enlisted the services of investment bank Evercore to guide this process, though it remains in the preliminary stages.
Share Price Decline Prompts Sale Consideration
Waystar, based in Lehi, Utah, and Louisville, Kentucky, has experienced a significant 24% decline in its share price this year, reducing its market value to approximately $4.8 billion. This downturn is part of a broader selloff affecting the software sector. The potential sale could serve as a litmus test for investor interest in the software industry, which has been under pressure due to concerns about the impact of artificial intelligence on traditional software models.
Strategic Shift Towards Technology Valuations
The company has strategically positioned itself as a healthcare software entity, focusing on automating and managing administrative tasks, differentiating itself from healthcare services that rely more on human labor. This approach was intended to capture the higher valuations typically associated with technology firms. Initially, this strategy was well-received, with Waystar’s shares climbing from $20 to a peak of $45 in 2025. However, investor sentiment shifted amidst growing concerns over technological disruptions.
History and Ownership Structure
Waystar originated from the 2017 merger of healthcare revenue management companies Zirmed and Navicure. It went public in 2024, backed by major stakeholders such as EQT, the Canada Pension Plan Investment Board (CPPIB), and Bain Capital. Currently, EQT holds a 13% stake, CPPIB owns 10%, and BlackRock Institutional Trust Company accounts for 8%, according to LSEG data. These stakeholders have not commented on the potential sale. Waystar and Evercore also declined to provide comments.
The exploration of a sale underscores the challenges faced by Waystar and similar companies in adapting to rapidly evolving market dynamics. The outcome of this process could signal broader trends in how investors view the future of software companies within the healthcare sector.