NextGen Healthcare to be acquired by Thoma Bravo
An executive said the move is part of a process to maximize shareholder revenue and position the company for continued growth.
Photo: Martin Barraud/Getty Images
NextGen Healthcare, a provider of cloud-based health technology solutions, has entered into a definitive agreement to be acquired by software investment firm Thoma Bravo. When the transaction is in the books, NextGen Healthcare will become a privately held company.
Under the terms of the agreement, NextGen shareholders will receive $23.95 per share in cash. The per-share purchase price represents a 46.4% premium to the company's unaffected closing stock price on August 22, and a 39.2% premium to the 30-day volume-weighted average price for the period ending September 1.
WHAT'S THE IMPACT?
David Sides, NextGen president and CEO, said the company stands to benefit from "increased capital, expertise and strategic flexibility."
"Thoma Bravo has a 20-plus-year record of investing in premier companies in the software and technology sectors," he said.
Jeffrey H. Margolis, chair of NextGen's Board of Directors, said the move is part of a deliberate process to maximize shareholder revenue and position the company for continued growth.
The transaction, which was approved unanimously by the NextGen Board of Directors, is expected to close in the fourth quarter of this year, subject to customary closing conditions, including approval by NextGen Healthcare shareholders and the receipt of required regulatory approvals. The transaction is not subject to a financing condition.
When the transaction is complete, NextGen Healthcare's common stock will no longer be listed on any public stock exchange.
THE LARGER TREND
In July, NextGen agreed to pay $31 million to resolve allegations that it violated the False Claims Act by misrepresenting the capabilities of certain versions of its EHR software, and providing unlawful payment to its users to induce them to recommend NextGen's software.
In a complaint filed in conjunction with the settlement, the U.S. contends that NextGen falsely obtained certification for its software in connection with the 2014 Edition certification criteria published by the Department of Health and Human Services' Office of the National Coordinator.
Specifically, the government alleges that NextGen relied on an auxiliary product designed only to perform the certification test scripts, which concealed from the certifying entity that NextGen's EHR lacked critical functionality.
As a result, the government alleges that the EHR NextGen ultimately released to its users lacked certain required functionalities, including the ability to record vital sign data, translate data into required medical vocabularies and create complete clinical summaries.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
