The deal would combine two health-care billing and payment technology providers

Health-care payments business Waystar Inc. has agreed to acquire eSolutions Inc. in a deal that values the revenue cycle management provider at around $1.3 billion, according to people familiar with the matter.

The amount Waystar agreed to pay couldn’t be determined, but it represents a multiple of roughly 10 times eSolutions’s projected 2020 revenue and 20 times its projected earnings before interest, taxes, depreciation and amortization, one of the people said.

Waystar is backed primarily by Stockholm-based EQT Partners, which bought the company from Bain Capital last year. The Canada Pension Plan Investment Board invested alongside EQT, and Bain Capital remains an investor as well.

Laura Cooper and Ted Bunker of the Wall Street Journal – Read more