July 23 (Reuters) - Healthcare software firm Waystar ( WAY )

said on Wednesday it will buy privately held Iodine

Software in a deal worth over $1.25 billion, including debt, to

expand its use of artificial intelligence in healthcare payments

and expand its market reach.

Waystar ( WAY ) will acquire all of Iodine from shareholders led

by private equity firm Advent International, with the

transaction funded through a mix of cash and stock. Following

the deal's completion, Iodine's shareholders will hold about 8%

of the combined company.

The news was first reported by the Wall Street Journal.