It's been a big year for Austin-based Iodine Software LLC. The company, which uses artificial intelligence to interpret raw clinical data, provide insights and improve revenue at health care institutions, made a couple key acquisitions in the front half of the year.
Now, the company announced Dec. 1 that Boston-based private equity firm Advent International Corp. purchased a "significant stake" in the business from existing shareholders. Though we don't know the financial details, the company said the deal values Iodine at more than $1 billion, putting the software maker in unicorn territory.
The company, led by co-founder and CEO William Chan, has been largely bootstrapped since its founding. In 2018, it sold an undisclosed amount of shares to Bain Capital Ventures and Silversmith Capital Partners. Advent bought the shares from Bain and Silversmith, which retain some stake in the company.
After this story was initially published, a spokesperson clarified that the deal does not actually provide new funding for Iodine, since shareholders were the ones selling their stakes. But it could lead to access to capital for future growth.
Iodine earlier this year acquired Colorado-based Artifact Health, which makes a mobile platform to streamline physician queries, and ChartWise Medical Systems, a clinical documentation improvement software company. Iodine says its software is used by more than 800 hospitals and 80,000 health care providers nationwide. An Iodine spokesperson said the company currently has 130 employees and that it plans to grow to 200 or more in the next 12 months. That was up from about 120 employees in June, including 60 in Austin.
“Utilizing advancing technology to scale hospital resources, ease administrative burden, and maximize reimbursement is more important than ever,” Chan said in a statement. “We’ve always been committed to building the most powerful, predictive tools available. This investment provides access to capital for expansion and growth strategies so that we can innovate faster and find more ways to empower healthcare leaders to meet with confidence the delicate balance of quality, efficiency, and system financial resilience.”
Chan previously co-founded Austin-based healthcare startup Crimson, which was acquired by The Advisory Board Company in 2008. He was also co-founder and VP of marketing at WhisperWire, which was acquired by Convergys in 2004.
Other additions to the Austin unicorn club in 2021 include ZenBusiness, which announced a $200 million funding round in November; The Zebra, which scored $150 million in April; and rocket maker Firefly Aerospace, which raised $75 million in May.
An earlier version of this story mischaracterized who sold shares in the deal.
