Waystar Mulls Sale as Market Value Drops Amid Software Sector Slump
Healthcare software firm Waystar is considering a sale, two years post-IPO, as its market value declines.
Waystar, a leading healthcare software company, is exploring strategic options including a potential sale, according to sources familiar with the matter. The company, which went public two years ago, has seen its market value decrease to approximately $4.8 billion following a 24% decline in its share price this year, amid a general downturn in the software sector.
Seeking Higher Valuations
Based in Lehi, Utah, and Louisville, Kentucky, Waystar provides technology solutions for automating and managing administrative tasks in healthcare settings. The company has positioned itself as a software provider rather than a service-based business, aiming to secure the higher valuations typically associated with tech firms. However, recent concerns about the impact of artificial intelligence advancements on software companies have contributed to pressure on its stock, which once peaked at $45 per share in 2025.
Investment Bank Advisory
Waystar has engaged investment bank Evercore to advise on its strategic review process. Sources indicate that discussions are in the early stages, and a sale is not guaranteed. Neither Waystar nor Evercore provided comments on the matter. The company was formed in 2017 through the merger of healthcare revenue management firms Zirmed and Navicure, and its significant shareholders include EQT, the Canada Pension Plan Investment Board (CPPIB), and BlackRock Institutional Trust Company.
Ownership and Market Context
Waystar's major shareholders, EQT and CPPIB, hold 13% and 10% stakes respectively, while BlackRock owns 8%, according to data from LSEG. EQT and BlackRock declined to comment, and CPPIB did not respond to requests for comment. The potential sale of Waystar could provide insights into the current appetite of investors for software companies amid a challenging market environment.
As the healthcare software industry navigates these changes, Waystar's strategic decisions will be closely watched by stakeholders and investors looking to understand the evolving landscape of tech-driven healthcare solutions.