Waystar Holding Corp. Acquires Iodine Software in Definitive Agreement

Waystar Holding Corp. (WAY) has announced a definitive agreement to acquire Iodine Software. CEO Matt Hawkins and CFO Steven Oreskovich will discuss the acquisition and the company's financial results on a conference call. The acquisition is expected to enhance Waystar's capabilities and drive growth.

Waystar Holding Corp. (WAY) has announced a definitive agreement to acquire Iodine Software, a leading provider of AI-powered clinical intelligence software. The acquisition is expected to enhance Waystar's capabilities, drive growth, and expand its total addressable market. The transaction is anticipated to close by the end of 2025, subject to customary closing conditions and regulatory approvals.

The acquisition of Iodine Software will extend Waystar's AI leadership into clinical intelligence software, unlocking greater value for clients and shareholders. Waystar expects the acquisition to be immediately accretive to gross margin and adjusted EBITDA margin, as well as accretive to revenue growth and non-GAAP net income per diluted share in 2027 [1].

Iodine Software is trusted by many of the nation's premier health systems for its AI-powered clinical intelligence software. The acquisition will help Waystar to decrease the estimated $440 billion in annual administrative costs burdening providers [1]. Together, Waystar and Iodine will be better positioned to help decrease the estimated $440 billion in annual administrative costs 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 [1].

The acquisition will unlock new automation throughout Waystar's platform, leveraging Iodine's industry-leading AI capabilities in clinical documentation integrity, utilization management, and prebill revenue leakage identification to further streamline cumbersome tasks for providers [1]. The addition of these solutions is expected to expand Waystar's total addressable market by more than 15%.

Waystar expects to create opportunities that quickly expand GenAI applications in prior authorizations, claims management and processing, denial prevention, and appeals [1]. Iodine's proprietary clinical AI engine, IodineIQ, continuously trains on millions of patient encounters and billions of clinical data points to deliver relevant insights [1].

The acquisition will also deepen relationships with premier health systems. Iodine brings strong adoption and credibility among leading hospitals and health systems. The combined company is expected to serve 17 of the 20 U.S. News Best Hospitals [1].

Waystar will benefit from Iodine's fully subscription-based revenue model as well as significant cross-sell potential to both companies' client bases. In addition, Waystar has identified more than $15 million in run-rate cost synergies, to be realized within the first 18-24 months following closing [1].

The transaction will be funded with a 50/50 mix of cash and stock consideration. Upon closing of the transaction, current Waystar shareholders will own approximately 92% of the combined company on a fully diluted, pro forma basis and Iodine equity holders will own approximately 8% [1].

Waystar expects to maintain a strong balance sheet with an estimated adjusted net leverage ratio at transaction close of approximately 3.5x [1]. The transaction is anticipated to close by year-end 2025, subject to customary closing conditions and applicable regulatory approvals [1].

Waystar's CEO Matt Hawkins and CFO Steven Oreskovich will discuss the acquisition and the company's financial results on a conference call scheduled for Wednesday, July 23, 2025, at 5:30 p.m. ET [1].

References:
[1] https://investors.waystar.com/news-releases/news-release-details/waystar-acquire-iodine-software-accelerating-ai-powered