Waystar Holding Corp. has successfully completed the acquisition of Iodine Software, a move that has expanded its total addressable market by over 15%. This acquisition is expected 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.
The addition of Iodine's client base of more than 1,000 hospitals and health systems is forecasted to accelerate growth through enhanced cross-selling opportunities. Furthermore, the combination of Waystar's financial datasets with Iodine's clinical datasets is aimed at strengthening Waystar's AI platform to deliver transformational outcomes for healthcare providers.
The acquisition is also expected to unite Iodine's expertise in the critical stage between care delivery and claim submission, providing Waystar with expansive visibility across the healthcare payment ecosystem. This is intended to fuel next-generation AI capabilities that prevent revenue leakage and ensure providers are paid fully and accurately.
Matt Hawkins, the CEO of Waystar, emphasized the significance of this acquisition, stating, "Iodine joining Waystar brings together comprehensive clinical and financial intelligence on a single AI-powered platform — a unique differentiator in the market. This further powers automation in the revenue cycle, strengthens financial performance, and leverages combined data assets to drive a continuously learning AI platform that maximizes client outcomes."
In terms of financial advisors, Barclays served as the exclusive financial advisor, and Simpson Thacher & Bartlett LLP served as the legal advisor to Waystar, while J.P. Morgan Securities served as the exclusive financial advisor, and Weil, Gotshal & Manges LLP and Queen Saenz + Schultz PLLC served as legal advisors to Iodine.
Waystar's enterprise-grade platform processes over 6 billion healthcare payment transactions annually, including over $1.8 trillion in annual gross claims, and spans approximately 50% of U.S. patients. The company serves approximately 30,000 clients, representing over 1 million distinct providers, including 16 of 20 institutions on the U.S. News Best Hospitals list. Following these announcements, the company's shares moved -2.49%, and are now trading at a price of $36.975. For the full picture, make sure to review Waystar's 8-K report.
