TPG to acquire specialty healthcare tech provider Nextech for $1.4bn

In a move to strengthen its presence in the healthcare IT solutions space, global alternative asset firm TPG announced today that it is set to acquire Nextech, a leading provider of clinical and administrative healthcare technology solutions for specialty physician practices.

The definitive agreement, involving an investment of $1.4 billion through TPG Capital, sees TPG acquiring Nextech from Thomas H. Lee Partners (THL).

Nextech, well known for its end-to-end technology platform for specialty care providers, offers comprehensive electronic medical record and practice management software to specialty physician practices. The company’s intelligent, cloud-based solutions are tailored to meet the unique workflow requirements of its customers. With the goal to enhance operations, support patient care, and boost satisfaction, Nextech delivers its services using a single, integrated platform.

Bill Lucchini, CEO of Nextech, underscored TPG’s alignment with Nextech’s goal to simplify the healthcare experience, allowing physicians to concentrate on patient care. “In TPG, we have found a partner who supports our mission to simplify the process of delivering excellent care and who brings to our organization distinct experience building businesses in the healthcare and software sectors. We’re excited to work together to grow our capabilities and strengthen our position as the end-to-end technology platform for specialty care providers.”

Katherine Wood and Art Heidrich from TPG expressed their confidence in the value that Nextech’s Software as a Service (SaaS) and payment solutions bring to specialty providers, creating significant workflow and efficiency benefits. TPG anticipates this partnership will broaden the reach and impact of Nextech’s platform.

TPG’s history includes backing and scaling several prominent healthcare IT companies, leveraging the insights of its healthcare and software teams. Previous investments include Lyric (formerly known as ClaimsXten), WellSky, and IQVIA.

The acquisition deal is still subject to regulatory review and customary closing conditions, but is expected to be finalized in the third quarter of 2023. Once completed, this will augment Nextech’s established track record of delivering innovative solutions and services that drive efficiency, fuel growth, and enhance the patient care experience since 1997. At present, Nextech serves more than 11,000 physicians and over 60,000 office staff members across various clinical specialties.