Prolific tech investment firm Thoma Bravo has announced its plans to acquire NextGen Healthcare for $23.95 per share in cash, or approximately $1.6 billion in total. The deal is expected to close by the end of 2023.
The deal had already been rumored by anonymous sources close to the situation. Now it is all but official.
Once approved by shareholders and finalized, NextGen would no longer be listed on any public stock exchange and would become a privately owned company.
The sale price of $23.95 a share represents a premium of 46.4% over the company's unaffected closing stock price on Aug. 22 and a 39.2% premium over the 30-day volume-weighted average price ending Sept. 1. The stock has risen to over $23.60 with the news.
“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,” David Sides, president and CEO of NextGen, said in a statement. “Thoma Bravo has a 20+ year record of investing in premier companies in the software and technology sectors."
“NextGen Healthcare’s mission-critical EMR software and surround solutions are the backbone of ambulatory practices across the United States,” added A.J. Rohde, a senior partner at Thoma Bravo. “We are so proud to be working with NextGen Healthcare 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."
Thoma Bravo, under the leadership of managing partner Orlando Bravo, has plenty of resources to share with NextGen. Recent deals include the sale of financial software company Adenza to Nasdaq for $10.5 billion and the $3.6 billion agreement to divest from Imperva, another software company.
“We have followed NextGen Healthcare’s impressive business transformation for many years and are excited to apply Thoma Bravo’s strategic and operational expertise to drive continued growth and innovation,” said Peter Hernandez, vice president at Thoma Bravo. “We look forward to partnering with the NextGen Healthcare team to further accelerate product investments to better support the increasingly complex needs of ambulatory providers and ultimately improve patient outcomes.”
According to the announcement, the sale has already been approved by NextGen’s board of directors.
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Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.