Daily Newsletter

13 November 2023

Daily Newsletter

13 November 2023

Thoma Bravo finalises $1.8bn NextGen Healthcare purchase

NextGen Healthcare shareholders secured a cash payment of $23.95 for each share held.

November 13 2023

NextGen Healthcare is serving over 100,000 ambulatory healthcare providers in the US. Credit: create jobs 51 / Shutterstock.com.

US-based private equity company Thoma Bravo has closed a $1.8bn deal to buy NextGen Healthcare, a Cloud-based healthcare technology solutions provider in Georgia, US.

The deal will result in the delisting of NextGen Healthcare's stock from Nasdaq.

When signing the definitive agreement for the acquisition, Thoma Bravo said that the deal represents a 46.4% premium to NextGen Healthcare's stock close on 22 August and a 39.2% premium to its 30-day volume-weighted average price (VWAP) for the period ending 1 September.

Earlier this month, the acquisition received approval from NextGen Healthcare shareholders.

These shareholders secured $23.95 in cash for each share held.

NextGen Healthcare president and CEO David Sides said: “We are delighted to partner with Thoma Bravo to accelerate the delivery of transformational solutions to the ambulatory healthcare marketplace.

“Our employees, clients and partners are unified behind our vision of achieving Better Healthcare Outcomes for All.

“By combining our deep healthcare domain expertise with Thoma Bravo's renowned operational expertise, we believe we can deliver on that vision faster.”

Serving over 100,000 ambulatory healthcare providers in the US, NextGen Healthcare is recognised for its flagship platform, NextGen Enterprise.

In addition, the company's portfolio features solutions addressing physician burnout and enhancing patient experience.

Its tools also facilitate interoperability, powering 35% of Health Information Exchanges (HIEs).

Thoma Bravo senior partner A.J. Rohde said: “NextGen Healthcare's client-centric suite of solutions helps solve some of the most critical problems facing ambulatory healthcare providers of all sizes across the country.

“Together with David and his team, we look forward to driving accelerated growth and product innovation to even better serve the healthcare industry – from provider to patient.”

For NextGen Healthcare, Morgan Stanley and Latham & Watkins served as financial and legal advisers, respectively, for the transaction.

William Blair & Company and Goodwin Procter were financial and legal advisers, respectively, to Thoma Bravo.

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