EQT and CPPIB’s $2.7 Billion Acquisition of Majority Stake in Waystar

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. The Firm is representing EQT VIII Fund and Canada Pension Plan Investment Board in connection with the transaction.

The EQT VIII Fund (“EQT”) is a leading investment firm, with a portfolio companies in Europe, Asia and the US. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits in the best interests of 20 million contributors and beneficiaries. In order to build a diversified portfolio, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments.

EQT and CPPIB to acquire a majority stake in Waystar, a provider of critical Revenue Cycle Management software for healthcare systems and providers, from Bain Capital Private Equity.

Since its founding in 1984, Bain Capital Private Equity creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications.

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.

Bain Capital will retain a minority stake in the business.

Ropes & Gray team is led by private equity partners Laura Steinke (Picture) and Bill Mone and includes tax partner Amanda Holt, finance partners Byung Choi and Kevin Jarboe, benefits partner Jennifer Rikoski and labor & employment partner Megan Bisk.

The Simpson Thacher team includes Michael T. Holick, Patrick Naughton, Mark Myott, Kathey Guo, Austin Uhm and Sangitha Palaniappa (M&A); Jennifer Hobbs, Eli Isak and Remy Denner (Credit); Jonathan Goldstein and Jacqueline Clinton (Tax); David Rubinsky, Patricia Adams and Erik Ward (Employee Benefits and Executive Compensation); Jason Glover, Robert Lee and Vasanth Padaki (Private Funds); Andrew Lacy, Ellen Frye and Kelly Karapetyan (Antitrust); Peter Thomas and Mick Tuesley (CFIUS); Lori Lesser and Alysha Sekhon (Intellectual Property); Krista McManus (Real Estate); and Abram Ellis, Joseph Betteley and Mark Skerry (Regulatory). Associates Elaine Zhou and Mary Keating and Summer Associates Joann Kim and Alec Kohli provided valuable assistance.

Involved fees earner: Megan Bisk – Ropes & Gray; Byung Choi – Ropes & Gray; Amanda Holt – Ropes & Gray; Kevin Jarboe – Ropes & Gray; William Mone – Ropes & Gray; Jennifer Rikoski – Ropes & Gray; Laura Steinke – Ropes & Gray; Patricia Adams – Simpson Thacher & Bartlett; Joseph Betteley – Simpson Thacher & Bartlett; Jacqueline Clinton – Simpson Thacher & Bartlett; Remy Denner – Simpson Thacher & Bartlett; Abram Ellis – Simpson Thacher & Bartlett; Ellen Frye – Simpson Thacher & Bartlett; Jason Glover – Simpson Thacher & Bartlett; Jonathan Goldstein – Simpson Thacher & Bartlett; Meng Yu Guo – Simpson Thacher & Bartlett; Jennifer Hobbs – Simpson Thacher & Bartlett; Michael Holick – Simpson Thacher & Bartlett; Eli Isak – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; Mary Keating – Simpson Thacher & Bartlett; Joann Kim – Simpson Thacher & Bartlett; Alec Kohli – Simpson Thacher & Bartlett; Andrew Lacy – Simpson Thacher & Bartlett; Robert Lee – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Krista McManus – Simpson Thacher & Bartlett; Mark Myott – Simpson Thacher & Bartlett; Patrick Naughton – Simpson Thacher & Bartlett; Vasanth Padaki – Simpson Thacher & Bartlett; Sangitha Palaniappa – Simpson Thacher & Bartlett; David Rubinsky – Simpson Thacher & Bartlett; Alysha Sekhon – Simpson Thacher & Bartlett; Mark Skerry – Simpson Thacher & Bartlett; Peter Thomas – Simpson Thacher & Bartlett; Malcolm Tuesley – Simpson Thacher & Bartlett; Austin Uhm – Simpson Thacher & Bartlett; Erik Ward – Simpson Thacher & Bartlett; Elaine Zhou – Simpson Thacher & Bartlett;

Law Firms: Ropes & Gray; Simpson Thacher & Bartlett;

Clients: Bain Capital Private Equity; Canada Pension Plan Investment Board; EQT VIII SCSp;

Author: Ambrogio Visconti