Investment Firm Acquires Health IT Vendor NextGen Healthcare

Health IT vendor NextGen Healthcare has entered into a definitive agreement to be acquired by software investment firm Thoma Bravo.

Once the deal is complete, NextGen Healthcare will become a privately held company.

Under the terms of the agreement, NextGen stockholders will receive $23.95 per share in cash. The per-share purchase price represents a 46.4 percent premium to NextGen's unaffected closing stock price on August 22 (the last trading day before published market speculation regarding a potential transaction involving the vendor).

The per-share purchase price also represents a 39.2 percent premium to the 30-day volume-weighted average price for the period ending on September 1.

"Under the terms of the agreement, NextGen Healthcare shareholders will receive significant immediate cash value for their shares," David Sides, president and chief executive officer of NextGen Healthcare, said in a press release.

"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," he added. "Thoma Bravo has a 20+ year record of investing in premier companies in the software and technology sectors. We look forward to joining forces to deliver on our mission of Better."

NextGen's health IT helps healthcare organizations with operations ranging from digitalizing patient records to revenue cycle management.

"NextGen Healthcare's mission-critical EMR software and surround solutions are the backbone of ambulatory practices across the United States," said AJ 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," Rohde continued.