Waystar Acquires Iodine Software for $1.25 Billion to Expand AI in Healthcare Payments and Clinical Documentation

Waystar Acquires Iodine Software to Enhance AI-Driven Healthcare Payment Solutions

On July 30, 2025, Waystar, a leading healthcare payment software provider based in Lehi, Utah, announced its agreement to acquire Iodine Software for $1.25 billion. This strategic move aims to integrate Iodine's advanced AI capabilities into Waystar’s platform, improving clinical documentation integrity, utilization management, and identifying prebill revenue leakage.

Expanding AI Capabilities in Healthcare Payments

Waystar supports around 30,000 clients and over 1 million providers, processing more than 6 billion healthcare payment transactions annually. The platform handles over $1.8 trillion in gross claims, covering about half of U.S. patients. Iodine Software, headquartered in Austin, Texas, serves more than 1,000 hospitals and health systems, offering real-time insights and automation across the mid-revenue cycle—from admission to claim submission.

With this acquisition, Waystar plans to unlock new automation opportunities by leveraging Iodine’s AI-driven clinical documentation and utilization tools. This integration is expected to increase Waystar’s total addressable market by over 15%. Combining Iodine’s clinical data with Waystar’s extensive data network will also enhance the capabilities of Waystar AltitudeAI, facilitating faster growth of Generative AI applications in areas like prior authorizations, claims processing, denial prevention, and appeals.

About Iodine’s AI Technology

Iodine’s proprietary AI engine, IodineIQ, continuously learns from millions of patient encounters and billions of clinical data points to provide actionable insights. This technology supports healthcare providers by reducing denied claims, automating manual workflows, and increasing transparency in healthcare payments.

Matt Hawkins, CEO of Waystar, highlighted the company’s mission: “We simplify healthcare payments by eliminating unnecessary denied claims, automating manual work, and increasing transparency. Adding Iodine’s clinical intelligence platform and talented team is a major step forward in achieving these goals.”

Strategic Benefits and Financial Details

• Iodine brings strong adoption among top hospitals and health systems, which is expected to expand Waystar’s reach and deepen provider relationships.
• The acquisition adds a fully subscription-based revenue stream and offers significant cross-selling potential between both companies’ clients.
• Waystar anticipates over $15 million in run-rate cost synergies within 18 to 24 months after closing.

The deal will be funded equally with cash and stock. After completion, existing Waystar shareholders will own about 92% of the combined company, while Iodine’s equity holders will hold roughly 8%. Advent International, Iodine’s largest shareholder, will receive Waystar shares and agree to an 18-month lockup period.

The transaction is expected to close by the end of 2025, pending regulatory approvals and customary closing conditions. Waystar also projects second-quarter 2025 revenue of approximately $271 million, marking a 15% increase year-over-year.

For healthcare professionals interested in AI applications and automation in healthcare revenue cycle management, the integration of Iodine’s technology with Waystar’s platform signals a meaningful enhancement in payment processing efficiency and clinical data utilization.

Learn more about AI applications in healthcare and related training opportunities at Complete AI Training.