Waystar Considers Sale as Market Value Drops, Sources Reveal

Waystar, a healthcare software provider based in Lehi, Utah, and Louisville, Kentucky, is reportedly exploring strategic options, including a potential sale. According to sources familiar with the matter, the company has engaged investment bank Evercore to advise on the process, which remains in its preliminary stages. The possibility of a sale comes just two years after Waystar went public on the New York Stock Exchange.

The firm, known for its technology that automates and manages administrative tasks for hospitals and doctors, has seen its market value decline to approximately $4.8 billion following a 24% decrease in its share price this year. This downturn is part of a broader selloff affecting the software sector. Waystar initially positioned itself as a technology company, aiming to achieve higher valuations typical of the tech industry rather than those of traditional healthcare services.

Investment Bank Evercore Advises on Potential Sale

Sources indicate that Waystar's exploration of options is being guided by Evercore, though they caution that plans could change and a sale might not occur. Both Waystar and Evercore have declined to comment on the matter. The move could test investor interest in software companies amid current market conditions.

Waystar was created from a merger between healthcare revenue management firms Zirmed and Navicure in 2017. It gained significant backing from investment groups including EQT, the Canada Pension Plan Investment Board (CPPIB), and Bain Capital, which took the company public in 2024. EQT remains the largest shareholder with a 13% stake, while CPPIB holds 10% and BlackRock Institutional Trust Company has 8%, as per data provided by LSEG.

Market Challenges and Investor Concerns

Initially, investors were optimistic about Waystar's model, which drove its stock price from $20 to a peak of $45 in 2025. However, concerns about the potential impact of artificial intelligence advancements on software companies have since caused investor confidence to wane, as noted in a July report by Morgan Stanley analysts.

Waystar's strategy to market itself as a technology company focused on automation was designed to attract higher valuations. However, the recent drop in its market value reflects broader challenges within the software sector, which has been under pressure from technological disruptions and changing investor sentiment.

While EQT and BlackRock have declined to comment on the potential sale, CPPIB did not immediately respond to requests for comment. The outcome of Waystar's exploration of strategic options remains uncertain, but it will likely provide insights into the current appetite for investments in the software sector.