Bain Capital-backed HST Pathways is in the second round of a sale process with William Blair advising, according to three sources familiar with the situation.

Initial bids were recently collected for the Nashville, Tennessee-based company, two of the sources said.

HST, which provides software solutions for the ambulatory surgery industry (ASC), generates around USD 100m in revenue, the sources said.

The seller is targeting a USD 1bn valuation for the asset, one of the sources said, while another source said that bids needed to come in at an 8x EBITDA multiple or more for parties to be invited to the second round.

One of the sources said that while the seller might not get its desired USD 1bn valuation, the company should still fetch a healthy multiple given its position within the ASC software solutions market as HST is one of only two businesses in this particular sector. Surgical Information Systems is the other company, the source added.

In 2020, HST and Casetabs combined businesses supported by a majority investment led by Bain Capital’s Tech Opportunities fund, with a minority investment from Nexxus Holdings, according to a press release. Terms of the deal were not disclosed.

HST has made several acquisitions under Bain Capital’s ownership. In 2022, HST acquired Simplify ASC, a revenue cycle management solution and provider of ASC management tools. The previous year it had also acquired Clariti Health and Simple Admit.

HST Pathways is a cloud‑based software platform designed for more than 1,800 ambulatory surgery centers (ASCs), offering tools for scheduling, charting, billing, inventory, patient engagement, and analytics, according to its website. The company helps ASCs streamline clinical and financial workflows, improve efficiency, and improve patient outcomes.

Bain declined to comment. HST, Nexxus, Blair did not respond to requests seeking comment.