Waystar Considers Sale Amid Declining Valuation, Sources Reveal
Healthcare software firm Waystar may be up for sale, with Evercore advising. Its market value has dropped following a 24% share price fall.
Waystar, a prominent healthcare software provider, is reportedly exploring strategic alternatives, including a potential sale, according to seven insiders familiar with the matter. This move comes just two years after the company debuted on the New York Stock Exchange. The Lehi, Utah, and Louisville, Kentucky-based firm has engaged investment bank Evercore to guide the process, which remains in its initial phases.
The company, known for its technology that automates administrative tasks in healthcare settings, aims to capitalize on the higher valuations typically assigned to tech firms. However, sources caution that plans are not set in stone, and a sale might not occur. Both Waystar and Evercore have declined to comment on the speculation.
Declining Market Value and Investor Concerns
Waystar's market value has plummeted to approximately $4.8 billion, following a 24% decrease in its share price this year. This decline is part of a broader downturn in the software sector. An auction could serve to test the current investor interest in software companies like Waystar.
Initially, Waystar's strategy to brand itself as a tech company was well-received, leading to a significant rise in its stock from $20 to a peak of $45 in 2025. However, investor enthusiasm waned as concerns grew over the potential disruptive impact of artificial intelligence on software businesses, as noted by Morgan Stanley analysts in July.
Company Background and Shareholder Interests
Waystar was created in 2017 through the merger of Zirmed and Navicure, both healthcare revenue management firms. The company's largest investors include private equity firm EQT, the Canada Pension Plan Investment Board (CPPIB), and Bain Capital, who took the company public in 2024. According to LSEG data, EQT holds a 13% stake, CPPIB owns 10%, and BlackRock Institutional Trust Company possesses 8%.
Neither EQT nor CPPIB provided comments on the potential sale, while BlackRock also declined to comment. The ongoing exploration of options reflects the company's strategic pivot in response to current market conditions.