Thoma Bravo to Buy NextGen Healthcare in $1.8B Take-Private Deal

Private equity giant Thoma Bravo has acquired NextGen Healthcare, an electronic health records vendor, in a take-private all-cash transaction valued at around $1.8 billion, including debt.

NextGen stockholders will get $23.95 in cash per share, a 46.4% premium to the stock’s closing price on August 22, just before news of the company’s potential sale became public.

The deal is expected to close in the fourth quarter of this year.

The announcement comes after Bloomberg reported on Monday that Thoma Bravo was in advanced discussions for a sale to NextGen, which followed a Reuters story late last month that NextGen was exploring options, including a sale.

NextGen President and CEO David Sides said the deal with Thoma Bravo will increase shareholder value and provide the company with “increased capital, expertise and strategic flexibility.”

In 2022, the company earned $653 million in revenue, up from $596 million in 2021. Recurring revenue accounts for around 90%.

According to a July study from research firm Pitchbook, healthcare investment is a “relatively uncommon play” for Thoma Bravo, accounting for around 9% of its total assets. IT accounts for around 76% of the firm’s investments.

Thoma Bravo’s healthcare portfolio includes Bluesight, a software supply chain company focusing on pharmacies and hospitals.

The firm manages more than $130 billion in assets. Most recently, it acquired identity and access management company ForgeRock in a deal valued at approximately $2.3 billion.