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 business projected to be accretive to Waystar’s  financial profile 

Expected to expand Waystar’s total addressable market by more than 15% Conference call to be held Wednesday, July 23, 2025, at 5:30 p.m. ET 

LEHI, Utah, LOUISVILLE, Ky., and AUSTIN, Tex., July 23, 2025 – 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. 

Building 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. 

Iodine 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. 

Together, Waystar and Iodine will be better positioned to help decrease the  estimated $440 billion in annual administrative costs1 burdening providers. Waystar 1 CAQH Index Report 2024

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. 

“Our mission is to simplify healthcare payments by eradicating unnecessary denied  claims, automating manual work, and increasing transparency for providers and  patients,” said Matt Hawkins, Chief Executive Officer of Waystar. “We are committed  to transforming healthcare through harnessing the power of AI to tackle the most  critical challenges in healthcare payments. Welcoming Iodine’s talented team and  clinical intelligence platform to Waystar is a terrific next step in achieving our  mission.” 

“We are proud to have built a market-leading AI software company in partnership  with Advent, Bain Capital Ventures, and Silversmith Capital Partners, and are thrilled  to join Waystar, an organization that shares our deep commitment to modernizing  the revenue cycle for providers,” said William Chan, Co-Founder and Chief Executive  Officer of Iodine Software. “From day one, our focus has been helping hospitals and  health systems capture the full value of care through transformational AI. As part of  Waystar, we are excited to accelerate that mission and amplify the value delivered to  healthcare providers.” 

“Our success has been driven by strong partnerships, continuous innovation, and  meaningful outcomes,” added Mike Kadyan, Co-Founder and Chairman of Iodine  Software. “We look forward to delivering even greater outcomes for providers as part  of Waystar’s market-leading platform.” 

“It has been a privilege to partner alongside the Iodine team as they have built a  category-defining AI-powered revenue cycle platform consistently delivering  exceptional ROI to its clients,” said Lauren Young and Carmine Petrone, Managing  Directors at Advent. “We are excited to build on that foundation together with  Waystar to drive even greater impact across healthcare, empowering organizations  to optimize their financial performance.” 

Strategic and Financial Benefits 

  • Unlocks transformational outcomes across the revenue cycle: Waystar  expects to unlock new automation throughout its 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. The addition of these solutions is  expected to expand Waystar’s total addressable market by more than 15%.  
  • Accelerates AI innovation with clinical intelligence: Integrating Iodine’s  unique clinical data assets with Waystar’s expansive data network is expected  to enhance the impact and reach of Waystar AltitudeAI™. Waystar expects to  create opportunities that quickly expand GenAI applications in prior  authorizations, claims management and processing, denial prevention, and  appeals. Iodine’s proprietary clinical AI engine, IodineIQ, continuously trains  on millions of patient encounters and billions of clinical data points to deliver  relevant insights. 
  • Deepens relationships with premier health systems: Iodine brings strong  adoption and credibility among leading hospitals and health systems. Iodine’s  footprint is expected to expand Waystar’s scale and deepen relationships with  premier providers. The combined company is expected to serve 17 of the 20  U.S. News Best Hospitals. 
  • Strengthens Waystar’s financial profile: 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. 

Transaction Details 

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%. Advent, Iodine’s largest  shareholder, is expected to only receive Waystar shares in connection with the  transaction and will agree to be locked up for 18 months after closing.  

Following the transaction, Waystar expects to maintain a strong balance sheet with  an estimated adjusted net leverage ratio at transaction close of approximately 3.5x. 

The transaction is anticipated to close by year-end 2025, subject to customary  closing conditions and applicable regulatory approvals. 

Preliminary Second Quarter 2025 Results  

Waystar expects second quarter 2025 revenue to be approximately $271 million,  representing approximately 15% year-over-year growth. 

The foregoing estimates are preliminary and unaudited and based on  management’s initial analysis of operations for the quarter. Waystar looks forward to  sharing additional information regarding the company’s second quarter 2025 results  as previously scheduled on July 30, 2025. 

Advisors 

Barclays is serving as exclusive financial advisor, and Simpson Thacher & Bartlett LLP  is serving as legal advisor to Waystar.  

J.P. Morgan Securities is serving as exclusive financial advisor, and Weil, Gotshal &  Manges LLP and Queen Saenz + Schultz PLLC are serving as legal advisors to Iodine. 

Conference Call 

Waystar will discuss the transaction on a conference call today, Wednesday, July 23,  2025, at 5:30 p.m. Eastern Time. The conference call can be accessed by dialing (800)  715-9871 from the United States and Canada or (646) 307-1963 internationally and  using conference code 8810133. A live audio webcast of the conference call will be  available on Waystar’s investor relations website at investors.waystar.com/news events/events. Following the call, an audio replay will be archived on the site. 

About Waystar 

Waystar’s mission-critical software is purpose-built to simplify healthcare payments  so providers can prioritize patient care and optimize their financial performance.  Waystar serves approximately 30,000 clients, representing over 1 million distinct  providers, including 16 of 20 institutions on the U.S. News Best Hospitals list.  Waystar’s enterprise-grade platform annually processes over 6 billion healthcare  payment transactions, including over $1.8 trillion in annual gross claims and  spanning approximately 50% of U.S. patients. Waystar strives to transform healthcare  payments so providers can focus on what matters most: their patients and  communities. Discover the way forward at waystar.com. 

About Iodine Software 

Iodine Software is the leader in AI-powered clinical intelligence, built to eliminate  revenue leakage, lower administrative burden, and ensure accurate reimbursement.  Trusted by more than 1,000 hospitals and health systems, Iodine delivers real-time  insight and automation across the mid-revenue cycle: connecting clinical  documentation, utilization management, and prebill workflows from admission  through claim submission. For over a decade, health systems have trusted Iodine to  apply the right AI – from machine learning, deep learning, large language models,  GenAI, to Agentic AI – to the right use case, consistently delivering reliable, high impact financial results.

At the core of the platform is IodineIQ, our proprietary Clinical Reasoning Knowledge  Engine, featuring a robust clinical condition library and a dataset of millions of  patient encounters and billions of clinical data points. IodineIQ mirrors clinical  reasoning to surface opportunities, predict outcomes, and guide decisions; ensuring  the patient’s clinical picture is fully and accurately reflected in status,  documentation, and final codes. Discover more at www.iodinesoftware.com. 

About Advent 

Advent is a leading global private equity investor committed to working in  partnership with management teams, entrepreneurs, and founders to help  transform businesses. With 16 offices across five continents, we oversee more than  USD $94 billion in assets under management* and have made over 430 investments  across 44 countries. 

Since our founding in 1984, we have developed specialist market expertise across our  five core sectors: business & financial services, consumer, healthcare, industrial, and  technology. This approach is bolstered by our deep sub-sector knowledge, which  informs every aspect of our investment strategy, from sourcing opportunities to  working in partnership with management to execute value creation plans. We bring  hands-on operational expertise to enhance and accelerate businesses. 

As one of the largest privately-owned partnerships, our 660+ colleagues leverage the  full ecosystem of Advent’s global resources, including our Portfolio Support Group,  insights provided by industry expert Operating Partners and Operations Advisors, as  well as bespoke tools to support and guide our portfolio companies as they seek to  achieve their strategic goals. 

To learn more, visit our website or connect with us on LinkedIn. 

*Assets under management (AUM) as of March 31, 2025. AUM includes assets  attributable to Advent advisory clients as well as employee and third-party co investment vehicles. 

Forward-Looking Statements 

This press release contains forward-looking statements, within the meaning of the  Private Securities Litigation Reform Act of 1995, that reflect our current views with  respect to, among other things, statements regarding Waystar’s expectations  relating to future operating results and financial position, including full year 2025,  and future periods; anticipated future investments; our industry, business strategy,  goals, and deployment of artificial intelligence in our solutions, our market position, 

offerings, future operations, margins, and profitability. Forward-looking statements  include all statements that are not historical facts. These statements may include  words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,”  “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,”  “foreseeable,” “outlook,” the negative version of these words or similar terms and  phrases to identify forward-looking statements in this press release, including any discussion of our guidance for full fiscal year 2025. 

The forward-looking statements contained in this press release are based on  management’s current expectations and are not guarantees of future  performance. The forward-looking statements are subject to various risks,  uncertainties, assumptions, or changes in circumstances that are difficult to predict  or quantify. Our expectations, beliefs, and projections are expressed in good faith,  and we believe there is a reasonable basis for them. However, there can be no  assurance that management’s expectations, beliefs, and projections will result or  be achieved. The following factors are among those that may cause actual results  to differ materially from the forward-looking statements: our operation in a highly  competitive industry; our ability to retain our existing clients and attract new clients;  our ability to successfully execute on our business strategies in order to grow; our  ability to accurately assess the risks related to acquisitions and successfully  integrate acquired businesses (including our proposed acquisition of Iodine); our  ability to establish and maintain strategic relationships; the growth and success of  our clients and overall healthcare transaction volumes; consolidation in the  healthcare industry; our selling cycle of variable length to secure new client  agreements; our implementation cycle that is dependent on our clients’ timing and  resources; our dependence on our senior management team and certain key  employees, and our ability to attract and retain highly skilled employees; the  accuracy of the estimates and assumptions we use to determine the size of our  total addressable market; our ability to develop and market new solutions, or  enhance our existing solutions, to respond to technological changes, or evolving  industry standards; the interoperability, connectivity, and integration of our  solutions with our clients’ and their vendors’ networks and infrastructures; the  performance and reliability of internet, mobile, and other infrastructure; the  consequences if we cannot obtain, process, use, disclose, or distribute the highly  regulated data we require to provide our solutions; our reliance on certain third party vendors and providers; any errors or malfunctions in our products and  solutions; failure by our clients to obtain proper permissions or provide us with  accurate and appropriate information; the potential for embezzlement, identity  theft, or other similar illegal behavior by our employees or vendors, and a failure of  our employees or vendors to observe quality standards or adhere to environmental,  social, and governance standards; our compliance with the applicable rules of the 

National Automated Clearing House Association and the applicable requirements  of card networks; increases in card network fees and other changes to fee  arrangements; the effect of payer and provider conduct which we cannot control;  privacy concerns and security breaches or incidents relating to our platform; the  complex and evolving laws and regulations regarding privacy, data protection, and  cybersecurity; our ability to adequately protect and enforce our intellectual property  rights; our ability to use or license data and integrate third-party technologies; our  use of “open source” software; legal proceedings initiated by third parties alleging  that we are infringing or otherwise violating their intellectual property rights; claims  that our employees, consultants, or independent contractors have wrongfully used  or disclosed confidential information of third parties; the heavily regulated industry  in which we conduct business; the uncertain and evolving healthcare regulatory  and political framework; health care laws and data privacy and security laws and  regulations governing our processing of personal information; reduced revenues in  response to changes to the healthcare regulatory landscape; legal, regulatory, and  other proceedings that could result in adverse outcomes; consumer protection laws  and regulations; contractual obligations requiring compliance with certain  provisions of the Bank Secrecy Act and anti-money laundering laws and  regulations; existing laws that regulate our ability to engage in certain marketing  activities; our full compliance with website accessibility standards; any changes in  our tax rates, the adoption of new tax legislation, or exposure to additional tax  liabilities; limitations on our ability to use our net operating losses to offset future  taxable income ; losses due to asset impairment charges; restrictive covenants in  the agreements governing our credit facilities; interest rate fluctuations;  unavailability of additional capital on acceptable terms or at all; the impact of  general macroeconomic conditions; our history of net losses and our ability to  achieve or maintain profitability; actions of certain of our significant investors, who  may have different interests than the interests of other holders of our securities; and  each of the other factors discussed under the heading of “Risk Factors” in the  Company’s 10-K filed with the Securities and Exchange Commission (the “SEC”) on  February 18, 2025, and in other reports filed with the SEC, all of which are available  on the Investor Relations page of our website at investors.waystar.com. 

Any forward-looking statements made by us in this press release speak only as of  the date of this press release and are expressly qualified in their entirety by the  cautionary statements included in this press release. Factors or events that could  cause our actual results to differ may emerge from time to time, and it is not  possible for us to predict all of them. You should not place undue reliance on our  forward-looking statements. We undertake no obligation to publicly update or  review any forward-looking statement, whether as a result of new information,  future developments, or otherwise, except as may be required by any applicable  securities laws. 

Waystar Media Contact 

Kristin Lee 
kristin.lee@waystar.com 

Daniel Yunger / Nick Capuano / Mark Fallati 
Kekst CNC 
kekst-waystar@kekstcnc.com 

Waystar Investor Contact 
investors@waystar.com 

Iodine Software Media Contact 

Michelle White 
mjwhite@iodinesoftware.com 

Isabella Morreale 
SolComms 
isabella@solcomms.com

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