The transaction is poised to accelerate NextGen Healthcare's growth and innovation, reinforcing its position as a trusted advisor to healthcare providers
NextGen Healthcare to be acquired by Thoma Bravo. (Credit: StockSnap from Pixabay)
NextGen Healthcare, a provider of cloud-based healthcare technology solutions, has entered into a definitive agreement to be acquired by Thoma Bravo, a software investment firm.
Following the successful completion of the transaction, NextGen Healthcare will transition into a privately held company.
As per the terms of the agreement, NextGen Healthcare shareholders will receive $23.95 per share in cash.
This purchase price per share represents a significant 46.4% premium compared to the company’s closing stock price on August 22 (the last trading day prior to the emergence of market speculation regarding a potential transaction involving the company).
Additionally, it presents a notable 39.2% premium in comparison to the 30-day volume-weighted average price for the period concluding on September 1.
The transaction is poised to accelerate the healthcare technology company’s growth and innovation, reinforcing its position as a trusted advisor to healthcare providers.
NextGen Healthcare president and CEO David Sides said: “Under the terms of the agreement, NextGen Healthcare shareholders will receive significant immediate cash value for their shares.
“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.
“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 Healthcare Outcomes for All.”
NextGen Healthcare board of directors chairperson Jeffrey Margolis said: “The agreement with Thoma Bravo validates NextGen Healthcare’s substantial strength and follows interest in the company by many parties.
“It is the result of a deliberate process to maximise shareholder value and best position NextGen Healthcare for continued growth and success.
“The agreement delivers significant cash value to our shareholders and creates exciting opportunities for NextGen Healthcare’s employees and clients.”
Thoma Bravo vice president Peter Hernandez said: “We have followed NextGen Healthcare’s impressive business transformation for many years and are excited to apply Thoma Bravo’s strategic and operational expertise to drive continued growth and innovation.
“We look forward to partnering with the NextGen Healthcare team to further accelerate product investments to better support the increasingly complex needs of ambulatory providers and ultimately improve patient outcomes.”
The approval for this transaction, which was met with unanimous agreement from the NextGen Healthcare board of directors, is anticipated to be finalised in the fourth calendar quarter of 2023.
This is, of course, subject to the customary closing conditions, which include approval by NextGen Healthcare shareholders and obtaining the requisite regulatory approvals. Notably, the transaction does not hinge on a financing condition.
Following the successful completion of the transaction, NextGen Healthcare’s common stock will no longer be publicly listed on any stock exchange.
Morgan Stanley & Co. is serving as the financial advisor to the healthcare technology firm, with Latham & Watkins acting as the legal advisor.
On the other side, William Blair & Company is acting as the financial advisor to Thoma Bravo, while Goodwin Procter is taking on the role of legal advisor in this transaction.