US-based private equity company Thoma Bravo has signed a definitive deal to buy electronic health record (EHR) vendor NextGen Healthcare for nearly $1.61bn.

NextGen shareholders will receive $23.95 a share in cash, which marks a 46.4% premium to its stock close on 22 August.

The deal was announced earlier this week and is expected to close in the fourth quarter of this year, upon which NextGen will become a privately held business.

NextGen CEO and president David Sides said: “Under the terms of the agreement, NextGen Healthcare shareholders will receive significant immediate cash value for their shares.

“In addition, with Thoma Bravo as a partner, the company will benefit from increased capital, expertise and strategic flexibility to accelerate the company’s leadership in providing healthcare technology solutions.”

NextGen confirmed that the deal does not depend on any financing condition.

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The transaction has already been approved by NextGen Healthcare’s board of directors and is currently awaiting clearance from regulators and the company’s shareholders.

NextGen Healthcare board chair Jeffrey Margolis said: “The agreement with Thoma Bravo validates NextGen Healthcare’s substantial strength and follows interest in the company by many parties.

“It is the result of a deliberate process to maximise shareholder value and best position NextGen Healthcare for continued growth and success.”

Thoma Bravo senior partner AJ Rohde said: “NextGen Healthcare’s mission-critical EMR software and surround solutions are the backbone of ambulatory practices across the US.

“We are so proud to be working with NextGen in its next phase as a private company and look forward to continued product innovation to better support NextGen Healthcare’s thousands of highly valued customers.”

NextGen’s financial adviser for the deal was Morgan Stanley & Co, with Latham & Watkins serving as legal adviser.

For Thoma Bravo, William Blair & Company served as the financial adviser while Goodwin Procter was the legal adviser.