Business
Waystar to Acquire Iodine Software, Accelerating the AI-Powered Transformation of Healthcare Payments
Extends Waystar's AI leadership into clinical intelligence software, unlocking greater value for clients and shareholders Highly recurring subscription-based
About this update from Waystar Holding Corp.
[{"type":"text","content":"Extends Waystar's AI leadership into clinical intelligence software, unlocking greater value for clients and shareholders\nHighly recurring subscription-based business projected to be accretive to Waystar's financial profile \nExpected to expand Waystar's total addressable market by more than 15%\nConference call to be held Wednesday, July 23, 2025, at 5:30 p.m. ET\nLEHI, Utah and LOUISVILLE, Ky., and AUSTIN, Texas, July 23, 2025 /PRNewswire/ -- Waystar (Nasdaq: WAY), a provider of leading healthcare payment software, today announced a definitive agreement to acquire 100% of Iodine Software (\"Iodine\") from shareholders led by Advent International, a leading global private equity investor, for a total enterprise value of $1.25 billion. The proposed transaction is expected to accelerate Waystar's ability to transform healthcare payments through its leading cloud-based software platform, empowering more than one million providers with advanced AI capabilities to prevent denials, reduce manual work, and improve financial performance.\n\n \n \n \n \n \n \n\n \nBuilding on Waystar's track record of successful M&A execution and synergy realization, Waystar expects the acquisition of Iodine to be immediately accretive to gross margin and adjusted EBITDA margin, and accretive to revenue growth and non-GAAP net income per diluted share in 2027. \nIodine is trusted by many of the nation's premier health systems for its AI-powered clinical intelligence software. Up to 60 million claims are denied each year due to administrative errors in the critical stage between care delivery and submission, costing providers billions in lost revenue. This highlights the essential role of accurate clinical documentation and coding in preventing revenue leakage and underpayments.\nTogether, Waystar and Iodine will be better positioned to help decrease the estimated $440 billion in annual administrative costs1 burdening providers. Waystar brings a decade-long track record of applying AI pervasively across its software platform to simplify healthcare payments. Iodine extends that leadership into clinical intelligence software, leveraging proprietary AI models trained on one of the industry's largest clinical datasets, representing more than a third of all U.S. inpatient discharges.\n\"Our mission is to simplify healthcare payments by eradicating unnecessar...