Thoma Bravo’s $1.8 Billion Acquisition of NextGen Healthcare

June 9, 2024
Author: Ayan Suthar

Overview of the Deal

Acquirer: Thoma Bravo
Target: NextGen Healthcare
Total Transaction Size: $1.8 billion
Announcement Date: September 6, 2023
Expected Close Date: November 2023
Target Advisors: Not publicly disclosed
Acquirer Advisors: Not publicly disclosed

On September 6, 2023, private equity firm Thoma Bravo announced its agreement to acquire NextGen Healthcare, a leading provider of electronic health record (EHR) software and practice management systems, for $1.8 billion. This acquisition aims to enhance Thoma Bravo’s portfolio in the healthcare technology sector, providing NextGen with resources to accelerate its growth and innovation.

Company Details (Acquirer – Thoma Bravo)

Thoma Bravo is a private equity firm with a focus on technology companies, managing over $70 billion in assets. The firm specializes in application, infrastructure, and security software, supporting companies through buyouts and growth equity investments.

Founded: 2008
Headquarters: Chicago, Illinois, USA
Assets Under Management: Over $70 billion
Recent Transactions:
- Acquisition of RealPage for $10.2 billion (2021)
- Acquisition of Proofpoint for $12.3 billion (2021)

Company Details (Target – NextGen Healthcare)

NextGen Healthcare is an American software and services company that develops and sells electronic health record (EHR) software and practice management systems to the healthcare industry. The company offers a range of software, services, and analytics solutions for medical and dental practices.

Founded: 1973
Headquarters: Atlanta, Georgia, USA
Number of Employees: Approximately 2,900 (as of September 2018)
Annual Revenue: Not publicly disclosed

Projections and Assumptions

Short-Term Consequences

The acquisition is expected to provide NextGen Healthcare with the financial backing and strategic support of Thoma Bravo, enabling the company to enhance its product offerings and expand its market reach.

Long-Term Upsides

With Thoma Bravo’s investment, NextGen Healthcare aims to accelerate innovation in its EHR solutions, improve client services, and strengthen its position in the healthcare technology market.

Risks and Uncertainties

The transaction is subject to customary closing conditions, including regulatory approvals. Potential risks include integration challenges, market competition, and the need to maintain continuity in leadership and customer relationships during the transition.

Sources