Health IT, Health Services

EQT Partners and the Canadian Pension Plan take a majority stake in Waystar

The deal leaves Bain Capital with a minority stake in the company and values Waystar at $2.7 billion.

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Waystar, the Louisville, Kentucky-based revenue cycle management company, has new majority owners in the form of Swedish private equity group EQT Partners and the Canadian Pension Plan Investment Board.

The deal leaves Bain Capital with a minority stake in the company and values Waystar at $2.7 billion. Bloomberg reported that EQT will be the company’s leading shareholder.

Waystar itself was formed as a result of a $750 million 2017 merger between revenue cycle management companies ZirMed and Navicure largely brokered by Bain Capital.

The company offers a range of health IT and revenue cycle management services and tools to its more than 450,000 healthcare provider customers. In the past year, Waystar has been on an buying spree as it looked to build out its service offerings and make itself a more attractive acquisition target.

The buying spree kicked off when Waystar acquired Waltham, Massachusetts-based revenue cycle management startup Connance last September to bolster its staff, technical capabilities and business footprint.

That deal was followed by the purchase of the health claims monitoring division of UPMC’s Ovation Revenue Cycle Services.

Earlier this year, the company also purchased PARO Decision Support in June, a revenue-cycle management services firm focused on applying predictive analytics to charity care for nonprofit hospitals. Waystar’s most recent M&A deal happened earlier this month when it bought prior authorization company Digitize.Ai.

Waystar’s new owners say they look to continue the company’s M&A activity with the purpose of building a unified platform that addresses the entire revenue cycle and is accessible through a single-sign on system.

The deal is expected to close later this year, subject to closing conditions and regulatory approvals.

Photo: mediaphotos, Getty Images