Thoma Bravo entered its second major take-private deal within as many weeks after the NextGen Healthcare board of directors agreed unanimously to sell the company for about $1.61 billion, or $23.95 per share in cash.
While the $2.3 billion ForgeRock acquisition the firm announced on Aug. 23 was focused on the identity and access management market, the NextGen deal expands Thoma Bravo’s presence in the healthcare IT segment, which was valued at $167.7 billion in 2022 and is expected to grow at a compound annual growth rate of 17.9% to 2030, according to Grandview Research.
NextGen, which bills itself as “remote first” and does not currently have a headquarters, offers a variety of healthcare technology solutions, with a focus on electronic health records software and practice management systems.
“NextGen Healthcare’s mission-critical EMR software and surround solutions are the backbone of ambulatory practices across the United States,” said Thoma Bravo Senior Partner A.J. Rohde. “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.”
The acquisition is Thoma Bravo’s third move in the healthcare IT space in as many months. In July, the $127 billion firm closed a strategic growth investment of undisclosed value in Bluesight, which offers a suite of medication management solutions. And in August, the firm sold Syntellis Performance Solutions — whose products included solutions for healthcare strategic financial planning — to Roper Technologies for $1.4 billion, exiting a position in entered in 2020.
The deal is expected to close in the fourth quarter, subject to customary closing conditions, including NextGen shareholder approval and relevant regulatory approvals. NextGen Healthcare is receiving financial advice and legal from Morgan Stanley and Latham & Watkins, respectively. William Blair & Company is serving as financial advisor to Thoma Bravo, while Goodwin Procter is providing legal advice.
