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LEHI, Utah/LOUISVILLE, Ky. - Waystar Holding Corp. (NASDAQ:WAY), a healthcare technology company with a market capitalization of $6.6 billion, announced today it has completed its acquisition of Iodine Software, combining financial and clinical healthcare datasets to enhance its AI-powered payment software platform.
The acquisition expands Waystar’s total addressable market by more than 15% by adding Iodine’s client base of over 1,000 hospitals and health systems. According to the company’s press release, the deal is expected to be immediately accretive to gross margin and adjusted EBITDA margin, with positive impacts on revenue growth and non-GAAP earnings per share anticipated by 2027. InvestingPro data shows Waystar maintains a strong financial position with a current ratio of 3.43, indicating robust liquidity to support this expansion.
"Iodine joining Waystar brings together comprehensive clinical and financial intelligence on a single AI-powered platform — a unique differentiator in the market," said Matt Hawkins, Chief Executive Officer of Waystar. The company’s strong market position is reflected in its impressive revenue of $1.01 billion in the last twelve months, with a healthy gross profit margin of 67.3%. For deeper insights into Waystar’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities.
The combined entity aims to strengthen automation capabilities in healthcare revenue cycle management by integrating Iodine’s expertise in the stage between care delivery and claim submission with Waystar’s existing payment software solutions.
Waystar currently serves approximately 30,000 clients representing over one million distinct healthcare providers, including 16 of the 20 institutions on the U.S. News Best Hospitals list. The company processes more than 6 billion healthcare payment transactions annually, handling over $1.8 trillion in annual gross claims across approximately 50% of U.S. patients.
Barclays served as exclusive financial advisor to Waystar, while J.P. Morgan Securities advised Iodine Software on the transaction.
This information is based on a press release statement from Waystar Holding Corp.
In other recent news, Waystar Holding Corp. has reported significant developments. The company has achieved double-digit revenue growth and maintained strong margins since its initial public offering, as noted in a recent press release. Additionally, Waystar has successfully repriced its first lien term loan, reducing the interest rate by 25 basis points and adding $250 million in incremental term loans to support its acquisition of Iodine Software.
Investment funds affiliated with EQT AB, Bain Capital, and the Canada Pension Plan Investment Board are set to sell 18 million shares of Waystar’s common stock in a secondary offering, with J.P. Morgan acting as the underwriter. Analysts have shown confidence in Waystar, with both Citizens JMP and Baird initiating coverage with Outperform ratings and price targets of $48.00 and $44.00, respectively. Furthermore, Waystar has been added to the S&P SmallCap 600 Index, reflecting its growing presence in the market. These developments highlight Waystar’s ongoing strategic initiatives and financial maneuvers.
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