Past fans may be excited to hear that Waystar is going public.
But you won’t see the boardroom drama of a hostile takeover here. In fact, Waystar isn’t even a media company.
Waystar Holding Corp. is a health tech company with a cloud-based software platform that helps hospitals and clinics manage payments. The company plans to list on the Nasdaq under the ticker “WAY.”
On October 26, the company filed an updated S-1/A, 7 new underwriters For public release. The new joint bookrunners include William Blair, Evercore ISI, BofA Securities, RBC Capital Markets, Deutsche Bank Securities, Canaccord Genuity and Raymond James. These new runners join the original trio of JPMorgan, Goldman Sachs, and Barclays.
Waystar privately reported on the IPO in August and filed an S-1 form with the Securities and Exchange Commission (SEC) on October 16.
At this stage, the company has not announced pricing terms for its IPO, instead citing a tentative amount of $100 million. In August, Reuters cites insiders They believe the deal could value the company at $8 billion.
Waystar was founded in 2017. Merger of two revenue cycle management companies, Navicure and Gilmed. In 2019, the company was busy acquiring multiple analytics solution providers, including Connance, Ovation Revenue Cycle Services’ transaction services technology, PARO, and Digitize.AI.
Matthew Hawkins has been leading the Company’s Chief Executive Officer since October 2017 after serving as President of Sunquest Information Systems, a medical testing and diagnostic software developer.
New payment “method”
The company’s software is intended to help healthcare providers navigate the complexities-filled matrix of healthcare payment processing.
“The process of determining how much a provider should be reimbursed involves millions of variables, including more than 10,000 ever-changing diagnosis codes and unique payer contracts, each with separate rules, processes, and reimbursement requirements. Contains permutations of. its prospectus.
Waystar says the process is made more cumbersome by constant changes to regulations and lengthy appeals procedures. The company claims its software optimizes processes to reduce administrative costs and enhance revenue for healthcare providers.
In terms of sales, Waystar is still in the red, but its profits are increasing. The company reported higher sales and narrower losses in 2022, with sales of 700 million in 2022 compared to 2021 sales of $579 million and a net loss of $47 million. 5 million, resulting in a net loss of $44 million.
health anxiety
At this point, vital signs monitors are barely ringing for health tech IPOs.
only 2 digital health companies Akili Interactive and Euda Health, which entered the market last year, were both special acquisition company (SPAC) deals. Depending on the success of its launch, Waystar could pave the way for more companies in the space to take the plunge and go public.
In determining the size of a transaction, interested investors will consider, among other things, Waystar’s growth prospects and evaluate the current market environment for such an IPO.
