UPDATE: Sept. 5, 2023: Private equity firm Thoma Bravo is reportedly in advanced talks to acquire NextGen Healthcare, according to a report on Monday from Bloomberg. A deal could be announced as soon as this week, the report said, citing sources familiar. NextGen and Thoma Bravo did not respond to a request for comment by publication time.
- Electronic health record vendor NextGen Healthcare is exploring a sale, according to a Reuters report on Wednesday.
- The report, which cited sources familiar, added that NextGen tapped investment bank Morgan Stanley as an advisor to explore options for the company.
- NextGen's offerings include software for revenue cycle management, telehealth, practice management and medical billing companies. The company reported increased year over year revenue in its most recent earnings report, including $163 million in recurring revenue.
The potential sale comes a month after U.S.-based NextGen agreed to pay $31 million to settle allegations that it violated the False Claims Act by misrepresenting versions of its product and providing illegal incentives to induce referrals for its software.
“Although we admitted no wrongdoing, the Civil Action and Settlement Agreement may have a material adverse effect on our reputation and consequently our business and operations,” the company stated in a June filing with the U.S. Securities and Exchange Commission.
Morgan Stanley and NextGen declined to comment for this article.
Reports have shown a slowdown in healthcare M&A as the industry faces macroeconomic headwinds like high interest rates. A report out earlier this month from accounting and consulting firm KPMG found that healthcare M&A hit a three-year low in the second quarter this year.
But the consulting firm PwC said it’s “optimistic” about industry M&A for the rest of the year, finding in a report that deal volumes held steady so far in 2023.