A majority stake of Waystar, a Duluth-based provider of revenue cycle software, has been purchased from Bain Capital. EQT Partners and the Canada Pension Plan Investment Board have agreed to acquire equity in the company, which brings Waystar's enterprise value to $2.7 billion.
Bain Capital will retain a minority stake in Waystar, according to a news release. Matt Hawkins, CEO of Waystar, told Atlanta Inno there will be no changes to leadership, hiring or offices at this time.
"In the longer term this new investment will mean even more accelerated growth of products and services for our clients, a renewed commitment to unparalleled client support and a lot of excitement and momentum for our team," he said.
Waystar provides revenue cycle management software for healthcare systems and providers. Founded in 2017 following the merger of revenue cycle technology providers Navicure and ZirMed, Waystar has served more than 450,000 healthcare providers---from hospitals to physician offices to non-acute care practices. The company's platform "streamlines the entire payment process" for the patient using predictive analytics and AI, which also lowers the cost and burden for healthcare providers.
Together, the private equity firms will continue to grow Waystar with healthcare and software expertise and continue to invest in innovation and transformative mergers and acquisitions. Most recently, Waystar acquired analytics solutions providers Connance, Ovation, Paro and Digitize.ai.
"Waystar sits at the intersection of TMT and healthcare, two of EQT’s core investment sectors. EQT has a track record of creating differentiated value for stakeholders with long-term, responsible and sustainable investment. CPPIB has a robust management team and product portfolio in place to drive significant penetration of Waystar’s markets," Hawkins said.
"The company has both the management team and product portfolio in place to drive significant penetration of its markets," Ryan Selwood, managing director and head of direct private equity at CPPIB, said in a statement.
The transaction is expected to close later this year, subject to conditions and approvals.
"EQT, CPPIB and Bain believe, as we do, in the power of Waystar’s platform and team to revolutionize healthcare in our country," Hawkins said. "Their investment in Waystar will mean an additional infusion of capital and resources to help us realize that mission and solve the industry’s biggest challenges."
