Waystar Considers Sale Amid Stock Decline, Sources Reveal
Healthcare software firm Waystar is exploring a potential sale following a significant stock decline, sources say.
Healthcare software company Waystar, known for its payment management solutions for hospitals and doctors, is reportedly exploring strategic options including a potential sale. This consideration comes just two years after its initial public offering in New York, according to multiple sources familiar with the matter.
Waystar's Strategic Shift
Based in Lehi, Utah, and Louisville, Kentucky, Waystar has engaged investment bank Evercore to guide the exploration process, which is still in its early stages. Although the outcome remains uncertain, the company is assessing whether the current market conditions favor a sale. Waystar's market capitalization has dropped to approximately $4.8 billion after a 24% decrease in its stock price this year, reflecting a broader downturn in the software sector.
Market Position and Challenges
Waystar has positioned itself as a technology-driven company, focusing on automating administrative tasks in healthcare. This strategy was intended to attract higher valuations typical of tech firms, differentiating it from traditional healthcare services that rely more on human labor. The company's stock reached a peak of $45 in 2025 from an initial $20, but concerns over the impact of artificial intelligence on the software industry have since pressured its valuation.
Ownership and Shareholder Interests
Waystar was established in 2017 through the merger of Zirmed and Navicure, two healthcare revenue management firms. Its major shareholders include EQT, the Canada Pension Plan Investment Board (CPPIB), and Bain Capital. EQT holds a 13% stake, CPPIB 10%, and BlackRock Institutional Trust Company 8%. While EQT and BlackRock declined to comment on the potential sale, CPPIB has yet to respond to inquiries.
The move to consider a sale could be an attempt to gauge renewed investor interest in software companies, despite current market challenges. Waystar's exploration of strategic alternatives highlights its response to shifting industry dynamics and investor sentiment.