Waystar Technologies, a notable player in healthcare payments technology, has announced that its parent company has taken the preliminary step of confidentially filing for an initial public offering (IPO), signaling its intent to embark on a stock market listing that could potentially value the company at up to $8 billion.
This development closely follows the IPO filing of chip designer Arm Holdings, anticipated as one of the standout listings in 2023. It further underscores the resurgence of new listings, marking a turnaround from the setbacks experienced in the IPO market due to elevated interest rates and apprehensions of an economic downturn in 2022.
Excluding special purpose acquisition companies (SPACs), an impressive $10.3 billion has been secured through 77 IPOs in the ongoing year, nearly doubling the sum raised during the equivalent period in 2022, as per data sourced from Dealogic.
Reports emerged earlier this week, indicating that Waystar had engaged financial institutions for an IPO, potentially attributing a valuation of up to $8 billion, encompassing debt.
In a private funding round conducted in 2019, the company was appraised at $2.7 billion following a majority stake acquisition by buyout firm EQT AB and Canada Pension Plan Investment Board (CPPIB) from Bain Capital, which retains a minority stake.
Waystar’s inception in 2017 through the merger of Navicure and ZirMed solidified its presence. The company specializes in crafting software solutions designed to aid hospitals and healthcare entities in streamlining their financial operations.
Further bolstering its position in the healthcare payments sector, Waystar has strategically acquired several of its competitors, including eSolutions in 2020. This acquisition augmented its footprint in the lucrative government health insurance sector for the elderly, commonly referred to as Medicare.
In a recent move, Waystar expanded its portfolio by acquiring the financial engagement platform HealthPay24. This acquisition marks the company’s eighth venture of its kind within the last five years, underscoring its commitment to advancing and innovating within the healthcare payments landscape.
