Private equity firm Thoma Bravo agreed to acquire health-records software company NextGen Healthcare Inc.
(Bloomberg) — Private equity firm Thoma Bravo agreed to acquire health-records software company NextGen Healthcare Inc.
Thoma Bravo will pay $23.95 in cash for each NextGen share, according to a statement Wednesday, confirming an earlier Bloomberg News report that a deal was imminent. The price represents a 46% premium to NextGen’s closing price on Aug. 22, before news of a potential sale first emerged.
The deal values NextGen at about $1.8 billion including debt, according to a spokesperson for Thoma Bravo. NextGen had drawn interest from several other buyout firms before talks accelerated with Thoma Bravo, people with knowledge of the matter said earlier.
Shares of NextGen jumped as much as 15% in pre-market New York trading Wednesday.
“NextGen Healthcare’s mission-critical EMR software and surround solutions are the backbone of ambulatory practices across the United States,” A.J. Rohde, a senior partner at Thoma Bravo, said in the statement.
NextGen provides cloud-based technology services that health-care providers use to manage patients’ electronic health records, among other services, according to its annual report. Its larger competitor Cerner Corp. sold itself to Oracle Corp. in a $28 billion deal completed in 2022.
Led by Managing Partner Orlando Bravo, Thoma Bravo is one of the most active technology investors among private equity firms. It agreed in June to sell financial software maker Adenza to Nasdaq Inc. for $10.5 billion. In July, Thoma Bravo inked a $3.6 billion deal to sell Imperva, another software maker, to Thales SA.
Thoma Bravo’s takeover is expected to close in the fourth quarter. Morgan Stanley advised NextGen on the transaction, while Thoma Bravo worked with William Blair & Co.
(Updates with transaction details, share movement from third paragraph.)
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