$5.2B healthcare RCM giant Waystar seeking buyer, report reveals

Waystar, a publicly traded company that works with hospitals and providers to automate revenue cycle workflows and facilitate patient payments, is reportedly seeking a buyer, one that would likely take the company private. 

Reuters was the first to report the news, citing seven sources familiar with the plan. According to the outlet’s reporting, Waystar has hired Evercore, a financial advisory firm, to act as a guide for any potential sale. 

While talks are already happening, sources said any negotiations are in early stages. The identity of a potential buyer was not revealed to reporters, but as Reuters noted, Swedish investment firm EQT is currently Waystar’s largest shareholder, owning roughly 13% of the company. 

Other major owners include the Canadian pension board operating as CPP Investments, along with BlackRock, one of the largest private equity firms on Wall Street.

Any potential buyout would mean appeasing these major shareholders, who could continue to have a stake in Waystar after a deal closes. But for now, the negotiating parties are a mystery.

Reuters added that Barclays bank is also advising Waystar on how to move forward.

If taken off the market, the revenue cycle management firm—which formed in 2017 as a result of a merger between Zirmed and Navicure—would only have been traded on a public exchange for two years.

Currently, Waystar has a $5.2 billion valuation. Its stock price rose 7% shortly after the Reuters report, but it’s still down 15% year to date. Shares of Waystar are currently trading at roughly $26.67.