NextGen Healthcare to go private in acquisition by Thoma Bravo

NextGen Healthcare, Inc. (Nasdaq: NXGN), a frontrunner in cloud-based healthcare technology solutions, has announced a definitive agreement for acquisition by Thoma Bravo, a leading software investment firm. The transaction will result in NextGen Healthcare becoming a privately held company, with shareholders receiving $23.95 per share in cash.

High Premium Offered to NextGen Healthcare Shareholders

The per-share purchase price offers a lucrative 46.4% premium over the company’s closing stock price on August 22, the last trading day before market speculation about a possible transaction. The acquisition price also indicates a 39.2% premium over the 30-day volume-weighted average price ending on September 1.

NextGen Healthcare and Thoma Bravo CEOs Comment on the Deal

David Sides, President and CEO of NextGen Healthcare, emphasized the substantial immediate cash value for NextGen Healthcare shareholders. “With Thoma Bravo as a partner, we will benefit from increased capital, expertise, and strategic flexibility,” Sides said. Jeffrey H. Margolis, Chair of the NextGen Healthcare Board of Directors, added that the agreement “best positions NextGen Healthcare for continued growth and success.”

NextGen’s Technology to Benefit from Thoma Bravo’s Expertise

Senior Partner at Thoma Bravo, A.J. Rohde, praised NextGen Healthcare’s EMR software as the “backbone of ambulatory practices” across the U.S. Peter Hernandez, a Vice President at Thoma Bravo, expressed excitement over the potential for further growth and innovation for NextGen Healthcare.

Deal Expected to Close in Q4 2023

Approved unanimously by the NextGen Healthcare Board of Directors, the transaction is anticipated to close in the fourth calendar quarter of 2023. The deal is subject to customary closing conditions including shareholder and regulatory approvals.

Advisors for the Acquisition

Morgan Stanley & Co. LLC serves as the financial advisor to NextGen Healthcare, while Latham & Watkins LLP is acting as the legal advisor. On the Thoma Bravo side, William Blair & Company is the financial advisor, and Goodwin Procter LLP is the legal advisor.

The acquisition spells a transformative phase for NextGen Healthcare, positioning it for accelerated growth and innovation in healthcare technology solutions. As the company transitions to private ownership, this deal underscores Thoma Bravo’s investment strategy in premier software and technology sectors.