NextGen Healthcare Inc. has recently announced that it has entered into an agreement to be acquired by private-equity firm Thoma Bravo. This deal, valued at approximately $1.61 billion, highlights the significant growth potential of the health records software company.
As per the terms of the agreement, NextGen shareholders will receive $23.95 in cash for each NextGen share they own. This represents a 16.5% premium to the company’s closing price of $20.55 on Tuesday. With 67.02 million shares outstanding as of July 21, this acquisition is set to bring about substantial financial value to NextGen shareholders.
Positive Market Response
The news of the potential buyout has already made waves in the market. On Tuesday, as reports surfaced about the impending deal, NextGen’s stock rose by 6.3%. Currently, trading for the stock has been halted due to the announcement.
The acquisition is expected to close in the fourth quarter of 2023, subject to regulatory approvals and customary closing conditions. Jeffrey Margolis, NextGen’s Chairman, expressed his confidence in the agreement, citing it as a validation of NextGen Healthcare’s strength and attracting interest from multiple parties.
Furthermore, in addition to the financial benefits for shareholders, Margolis emphasized that exciting opportunities would be created for NextGen Healthcare’s employees and clients as a result of this acquisition.