New York: Software program supplier Waystar, whose merchandise are utilized by hospitals and docs to handle funds, is exploring choices together with a possible sale that might return it to personal palms two years after a inventory market itemizing in New York, seven sources acquainted with the matter stated.
The Lehi, Utah, and Louisville, Kentucky-based firm has employed funding financial institution Evercore to advise on the method, which is at present at an early stage, two of the individuals stated, talking on situation of anonymity to debate confidential info. The plans might change and a sale might not materialize, they cautioned.
Waystar declined to remark. Evercore didn’t instantly reply to a request for remark.
Waystar’s market worth has fallen to roughly $4.8 billion after a 24% slide in its share value this yr amid a broader selloff within the software program sector.
An public sale course of might gauge whether or not investor urge for food for software program companies is returning.
Waystar sought to place itself as a healthcare software program firm, promoting know-how to automate and handle administrative work, relatively than as a healthcare companies enterprise that depends extra closely on individuals to carry out these duties. The technique aimed to win the upper valuations sometimes afforded to know-how corporations.
Buyers initially embraced the story, serving to drive the shares from $20 to a 2025 peak of $45, however the inventory later got here underneath stress as traders grew involved that advances in synthetic intelligence might disrupt software program corporations, Morgan Stanley analysts stated in a report in July.
Waystar was shaped in a 2017 merger between healthcare income administration corporations Zirmed and Navicure. Its largest backers, buyout agency EQT, the Canada Pension Plan Funding Board and various funding agency Bain Capital, took it public in 2024.
EQT stays the corporate’s largest shareholder with a 13% stake, adopted by CPPIB with 10% and BlackRock Institutional Belief Firm with 8%, in accordance with LSEG knowledge.
EQT declined to remark. CPPIB didn’t instantly reply to a request for remark. BlackRock declined to remark.
