- Asset management firm TPG announced Wednesday that it will acquire clinical and administrative healthcare technology company Nextech for $1.4 billion from Thomas H. Lee Partners through its private equity arm, TPG Capital.
- TPG has a history of investing in healthcare IT companies, including those with advanced analytics and big data solutions for clinical research. Its past investments include companies like Lyric (formerly ClaimsXten), WellSky and IQVIA Holdings.
- Through the acquisition, TPG will gain access to Nextech’s network of more than 11,000 physicians and more than 60,000 clinics. TPG expects the deal to close in the third quarter of 2023, pending regulatory review, according to a release.
The acquisition increases TPG Capital’s standing in healthcare services. Last year, TPG Capital acquired ClaimsXten, now known as Lyric, for $2.2 billion. The private equity firm agreed to acquire the claims-editing software company from UnitedHealth in a bid to alleviate antitrust concerns regarding the healthcare giant’s proposal to acquire Change Healthcare.
“In TPG, we have found a partner who supports our mission to simplify the process of delivering excellent care and who brings to our organization distinct experience building businesses in the healthcare and software sectors,” Bill Lucchini, CEO of Nextech, said in a statement.
Nextech offers cloud-based electronic health record and practice management software for clinical specialties such as dermatology, ophthalmology, orthopedics, med spa and plastic surgery. Customizing an EHR platform for a specialty like plastic surgery allows physicians to add features like photos and graphics, according to a Nextech blog post.
The acquisition from TPG Capital comes more than four years after Nextech was acquired by Thomas H. Lee Partners in 2019 in a deal with a reported enterprise value of more than $500 million.
The healthcare services sector saw robust dealmaking over the last two years. Deal volumes for healthcare remain steady this year, according to a recent report from consulting firm PwC, even as the sector faces increased regulatory scrutiny and high interest rates.