Waystar Weighs Sale of Healthcare Payments Software Business

Waystar, a healthcare payments management software company, is reportedly considering a potential sale, PYMNTS said. A Reuters report on Tuesday, Sept. 15, indicated that such a deal could revert the firm to non-public status two years after its 2024 public listing. The article referenced seven insiders with knowledge of the situation.

Those insiders told Reuters that Waystar engaged bankers to consult on the possible transaction. The publication noted that plans remain fluid and the divestiture might not occur. PYMNTS reached out to Waystar for a statement but did not receive a response.

The Reuters coverage highlighted that Waystar sought to position itself as a provider of technology for automating administrative tasks, distinguishing itself from a services-based model reliant on human labor. This approach aimed to secure the premium pricing typically afforded to technology firms during its 2024 initial public offering.

Shareholder support was initially strong, yet shares fell as worries grew that software providers face risks from artificial intelligence disruption, per the report. It referenced an analysis from Morgan Stanley.

In separate developments, Forus, an AI network for medicine, closed a $150 million round at a $3 billion value last week. Verily Health disclosed fresh funding from Nvidia and top-ups from current backers on Sept. 9 to assist medical groups in preparing their data for AI use.