The EQT VIII Fund and Canada Pension Plan Investment Board announced a definitive agreement to acquire a majority equity stake in Waystar ("the Company"), a leading provider of revenue cycle technology, from Bain Capital Private Equity ("Bain Capital"). Under the terms of the agreement, which values Waystar at $2.7 billion, Bain Capital will retain a minority stake in the Company.

Formed in 2017 through a combination of top ranked revenue cycle technology providers – Navicure and ZirMed – Waystar is a leading cloud-based provider of revenue cycle technology used by more than 450,000 healthcare providers across every care setting, from the largest health systems and hospitals to physician offices and non-acute care practices. Waystar's state-of-the art technology streamlines the entire payment process and brings meaningful price transparency to patients, leveraging predictive analytics and artificial intelligence to automate previously manual tasks to reduce administrative burden and ultimately lower costs for healthcare providers. Waystar is recognized for its market leading client satisfaction scores in every care setting. Recently, Waystar has enhanced its market leading technology platform with the acquisition and integration of several analytics solutions providers - Connance, Ovation, Paro, and Digitize.ai.

EQT and CPPIB's investment will support Waystar's continued growth and unlock innovation to solve the industry's biggest challenges. EQT and CPPIB will build on Waystar's successful track record in acquiring and integrating leading technologies to strengthen its innovative product platform, which provides customers with a unified, single sign-on access to solutions across the entire revenue cycle.

"We are thrilled to welcome two new growth-oriented investors, EQT and CPPIB, as our partners and to continue our excellent partnership with Bain Capital," said Matt Hawkins, CEO of Waystar. "Waystar's mission is to simplify and unify the healthcare payment process with best in class cloud technology, so that providers can focus on what really matters – patient care. These outstanding investors believe in our goals, value our performance culture and team members, and appreciate our track record of client satisfaction, innovation, and growth. This new investment will accelerate our ability to deliver great value to our clients and partners as they serve their patients and communities."

"We are pleased to be investing in Waystar, a leading provider of technology-based solutions that simplifies the payment reimbursement process for healthcare providers and patients alike," said Eric Liu, Partner at EQT Partners and Investment Advisor to EQT VIII. "We are thoroughly impressed with all that Matt and the Waystar team have accomplished so far and believe in Waystar's tremendous growth potential."  Mr. Liu continued, "EQT's investment in Waystar demonstrates our continued interest in partnering with companies that sit at the intersection of TMT and healthcare, two of EQT's core investment sectors, and in which the firm has a track record of creating differentiated value for all stakeholders." 

"This investment in Waystar provides CPPIB access to a best-in-class platform that delivers critical services and improves efficiency for a broad array of healthcare providers," said Ryan Selwood, Managing Director and Head of Direct Private Equity at CPPIB. "The Company has both the management team and product portfolio in place to drive significant penetration of its markets. We look forward to collaborating with our partners, EQT and Bain Capital, to support Waystar's continued growth and value creation for healthcare providers and patients."

"From our initial investment in Navicure, to the strategic combination with ZirMed and follow-on acquisitions that have created a true market leader, we are proud to have worked with management to help transform Waystar into a cutting-edge technology platform that provides healthcare partners with innovative solutions at scale," said David Humphrey, a Managing Director at Bain Capital Private Equity. "We are excited to continue our productive partnership with Matt and the exceptional management team that has been built at Waystar, and look forward to working with EQT and CPPIB to support the go-forward strategic growth plan while remaining focused on enabling greater transparency for patients."

The transaction is expected to close later this year, subject to customary conditions and approvals.

Barclays and Triple Tree acted as financial advisors to EQT, and Simpson Thacher & Bartlett LLP provided legal counsel. J.P. Morgan and Deutsche Bank acted as financial advisors to Bain Capital, and Ropes & Gray LLP provided legal counsel.