Sale of Bain’s Waystar may wrap by end of July: sources

  • Deal discussions value the healthcare tech giant at up to $3 bln: sources
  • Waystar launched sale process after inbound strategic interest
  • Healthcare SaaS company previously mulled IPO

Final bids for Bain Capital’s Waystar are due in late July, with a transaction expected to be signed before the end of the month, according to people familiar with the matter.

Current deal discussions value the healthcare technology giant between $2.7 billion and $3 billion, the people said.

The process for Bain’s Waystar has narrowed to primarily financial sponsors, the sources said, while cautioning that not all strategics have been eliminated. The anticipated outcome of the process and buyer mix could change, as discussions remain underway.

JP Morgan Securities and Deutsche Bank were hired earlier this year to advise on strategic options for Waystar, Buyouts reported in April.

The banks were engaged after the Louisville, Kentucky-based company received inbound strategic interest. Sources previously suggested Waystar could field looks from large strategics ranging from Oracle to Global Payments. 

A large payment processor was engaged in the process but dropped out, one of the sources said.

Waystar also considered an initial public offering in the past, sources previously told Buyouts.

The anticipated sale comes less than two years after Bain acquired ZirMed, merging it with existing portfolio company Navicure. The combined healthcare technology company was renamed Waystar in February 2018.

The September 2017 transaction valued ZirMed at about $750 million, sources said at the time. Bain was among three finalists alongside Pamplona Capital, which owns RCM platform nThrive, and Oracle, sources previously said.

Active buyer

Waystar has been acquisitive under Bain’s ownership. The company in June purchased PARO, a predictive analytics company focused on financial assistance for patients.

And last fall, WayStar acquired Connance, a predictive analytics company, and Ovation Revenue Cycle Services, a subsidiary of academic health system UPMC.

Led by CEO Matt Hawkins, Waystar provides revenue cycle management (RCM) software-as-a-service. It aims to improve and streamline healthcare billing, claims and patient payment processes. The company serves more than 450,000 providers, 750 health systems and hospitals, and 5,000 payers and health plans.

The anticipated sale of Waystar follows the IPO of its Nashville peer Change Healthcare. The RCM provider owned jointly by McKesson, Blackstone and Hellman & Friedman raised $640 million in last week’s public debut.

Elsewhere, health systems and healthcare services providers have been evaluating divestitures of RCM units. That includes Mednax, which in November said it planned to divest MedData, while Tenet Healthcare also continues to seek a buyer for Conifer Health Solutions.

Golden Gate Capital in late May bought a slight majority stake in Ensemble Health Partners from Bon Secours Mercy Health, assigning the RCM division an enterprise value between $1.5 billion and $2 billion, Buyouts reported.

Representatives for Bain and JPMorgan declined to comment. Reps for WayStar and Deutsche Bank did not immediately respond to requests for comment.