Waystar Weighs Sale Two Years After IPO Amid Software Sector Slump
Healthcare software firm Waystar considers sale options, hiring Evercore amid a market downturn.
Waystar, a prominent player in healthcare software, is exploring strategic options that may include a sale, according to sources familiar with the matter. The company, known for its technology that helps hospitals and doctors manage administrative tasks, has hired Evercore to advise on the process. This move comes just two years after Waystar's public debut on the New York Stock Exchange.
Market Valuation Challenges
Waystar's market value has seen a significant decline, dropping to approximately $4.8 billion after a 24% decrease in share price this year. The downturn reflects broader challenges in the software sector, influenced by investor concerns about the potential impact of artificial intelligence advancements on traditional software companies. In a July report, Morgan Stanley analysts highlighted these apprehensions as contributing factors to the pressure on Waystar's stock, which had previously peaked at $45 per share in 2025 from an initial $20.
Company Background and Ownership
Formed in 2017 through the merger of Zirmed and Navicure, Waystar has positioned itself as a technology company rather than a service-oriented business. This strategic positioning aimed to attract higher valuations typical of tech firms. Waystar's major shareholders include EQT, the Canada Pension Plan Investment Board (CPPIB), and Bain Capital, who collectively took the company public in 2024. EQT remains the largest shareholder with a 13% stake, followed by CPPIB at 10% and BlackRock with 8%, as per LSEG data.
Potential Sale and Future Prospects
The exploration of a sale is still in its early stages, and the outcome remains uncertain. An auction process could test the waters of investor interest in software enterprises amidst the current market environment. While the company and its advisors, Evercore, have declined to comment, the possibility of Waystar returning to private ownership looms.
The decision to consider a sale underscores the shifting dynamics within the healthcare software industry, as companies navigate market volatility and technological advancements. Whether Waystar proceeds with a sale or opts for a different strategic direction, the company's next steps will be closely watched by industry analysts and investors alike.