Waystar has signed a definitive agreement to acquire AI-powered revenue cycle management company Iodine Software.
The proposed $1.25 billion deal will be funded with a 50/50 mix of cash and stock consideration, according to a July 23 Waystar news release. The acquisition is expected to close by the end of 2025, subject to customary closing conditions and regulatory approvals.
By acquiring Iodine, Waystar said it will be “better positioned to help decrease the estimated $440 billion in annual administrative costs burdening providers.”
Waystar expects to unlock new automation through its platform by leveraging Iodine’s AI capabilities in clinical documentation integrity, utilization management and prebill revenue leakage identification, according to the release. The addition of these services is expected to expand the company’s total addressable market by more than 15%.
The company also expects the acquisition will create opportunities that quickly expand generative AI applications in prior authorizations, claims management and processing, denial prevention and appeals.
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