In a significant deal valued at $1.6 billion, private equity firm Thoma Bravo is set to acquire NextGen Healthcare Inc., a prominent healthcare data provider based in Atlanta, GA.
Upon completion of this transaction, NextGen Healthcare, a company that has been publicly traded on the Nasdaq since 1982, will transition into a privately held entity. The terms of the deal dictate that shareholders of NextGen Healthcare will receive $23.95 per share in cash, marking an impressive 46.4% premium compared to the closing stock price on August 22, just before news of the potential acquisition surfaced.
David Sides, President and CEO of NextGen Healthcare, expressed confidence in the agreement, highlighting its potential to enhance shareholder value while affording the company increased capital, expertise, and strategic flexibility.
Peter Hernandez, Vice President of Thoma Bravo, noted the firm’s longstanding observation of NextGen’s transformation efforts and the positive impact this acquisition would have. He emphasized the potential to expedite product investments aimed at improving patient outcomes.
As a result of this development, NextGen Healthcare’s shares experienced a surge of over 14% on the day of the announcement. Over the past two weeks, the company’s stock has witnessed an impressive 40% increase, with a 30% rise since the beginning of September. This acquisition is poised to have a substantial impact on the healthcare data landscape, marking a strategic move in the rapidly evolving healthcare technology sector.