Aug 24 (Reuters) – Waystar Technologies, a technology company for healthcare payments, announced on Thursday that its parent company has filed confidentially for an IPO, taking the first step towards an IPO that is valued at up to US$8 billion dollars could have.
The announcement comes shortly after chip designer Arm Holdings’ IPO, which is expected to be one of the highlights of 2023.
It also underscores a resurgence of new listings after the IPO market was decimated by high interest rates and fears of a 2022 recession.
Excluding special purpose acquisition companies (SPACs), $10.3 billion has been raised through 77 IPOs so far this year, nearly double the amount for the same period in 2022, according to data from Dealogic.
Earlier this week, people familiar with the matter told Reuters that Waystar had been recruiting banks for an IPO that could give the company a valuation of up to $8 billion including debt.
In a 2019 private funding round, the company was valued at $2.7 billion when buyout firm EQT AB (EQTAB.ST) and Canada Pension Plan Investment Board (CPPIB) bought a majority stake from Bain Capital, the continues to be a minority shareholder.
Waystar was formed in 2017 through the merger of Navicure and ZirMed. It makes software that helps hospitals and healthcare companies manage their finances.
The company solidified its position in the healthcare payments industry with the acquisition of some of its competitors, including eSolutions in 2020, which strengthened its presence in the lucrative government health insurance market for the elderly known as Medicare.
Earlier this month, the company bought financial engagement platform HealthPay24, marking its eighth acquisition in the past five years.
Reporting by Niket Nishant in Bengaluru; Edited by Shilpi Majumdar and Saumyadeb Chakrabarty
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