Waystar, a leading provider of healthcare payment software, announced it will acquire Iodine Software in a $1.25 billion deal from shareholders led by Advent International. The acquisition is expected to accelerate Waystar’s transformation of healthcare payments by expanding its AI-powered capabilities across the revenue cycle. Iodine’s clinical intelligence platform, widely adopted by top U.S. health systems, helps reduce revenue leakage caused by administrative errors that lead to denied claims—currently costing providers billions each year.
By integrating Iodine’s proprietary AI, which is trained on data from over one-third of all U.S. inpatient discharges, Waystar aims to deepen automation in areas like clinical documentation, utilization management, and revenue capture. The combined company will serve 17 of the 20 top-ranked U.S. hospitals and is expected to expand Waystar’s total addressable market by more than 15%.
Financially, the acquisition will be funded with a 50/50 mix of cash and stock. Waystar shareholders will own approximately 92% of the combined entity, and Iodine shareholders, 8%. Advent will receive only Waystar shares and agree to an 18-month lock-up. Waystar expects the deal to be accretive to margins immediately and to revenue and non-GAAP earnings by 2027, with $15 million in cost synergies identified within 18–24 months.
Waystar also reported preliminary Q2 2025 revenue of approximately $271 million, reflecting 15% year-over-year growth. The transaction is expected to close by the end of 2025, subject to customary conditions and regulatory approval.
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