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Bain and Parthenon-backed Zelis is weighing strategic options

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Jan 26, 2024
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Illustration: Gabriella Turrisi/Axios

Health care payments giant Zelis is weighing strategic options — including a potential sale or IPO — that could value it at $15 billion-plus, Axios has confirmed.

Why it matters: Zelis is considered a blue-chip asset by most funds — the outcome of its process will be a helpful tell of where market appetite sits.

Details: The Bain Capital and Parthenon Capital-backed company is working with advisers and is open to bringing in new investors in a private transaction, per Bloomberg, which initially reported the news.

Catch up quick: Bain and Parthenon merged Zelis Healthcare and RedCard Systems in 2019 in a deal valuing the combined business at $5.7 billion.

  • The company has completed a spate of acquisitions since.
  • CEO Amanda Eisel told Axios in 2022 that the company planned to position itself for a dual-track process.

State of play: Last August, Axios reported that rival Waystar was plotting an IPO that could value its business at $8 billion.

  • EQT and Canada Pension Plan Investment Board-backed Waystar was working with Goldman Sachs, JPMorgan and Barclays on the listing.

Bain and Parthenon did not respond to requests for comment.

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