Waystar to acquire Iodine Software for $1.25B

Waystar (WAY) announced a definitive agreement to acquire 100% of Iodine Software from shareholders led by Advent International, a leading global private equity investor, for a total enterprise value of $1.25B. 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. 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.