Madison Dearborn Partners (MDP), a leading private equity investment firm based in Chicago, announced it has signed an agreement with Thoma Bravo to buy a substantial ownership position in NextGen Healthcare, a leading provider of innovative healthcare technology and data solutions. Thoma Bravo will retain a substantial ownership position in NextGen Healthcare. MDP will partner with Thoma Bravo and NextGen Healthcare’s management team to support NextGen Healthcare’s growth.
Originally founded in 1974, NextGen Healthcare provides Electronic Health Record and Practice Management software and services enabling healthcare practices to focus on delivering better patient healthcare outcomes and increasing clinical quality and productivity. And since buying NextGen Healthcare in a take-private transaction in 2023, Thoma Bravo has helped the Company modernize and enhance its capabilities, solutions, and operating structure to enhance the client experience.
Plus, NextGen has achieved meaningful organic growth, improved profit margins, and hired new executive leaders to enhance its technology and services further to provide a superior user experience. As investment partners, Thoma Bravo and MDP will support NextGen Healthcare’s leadership team in continuing to execute the Company’s growth strategy to deliver best-in-class solutions to more healthcare clients.
The deal – which is subject to customary regulatory approvals – is expected to close in the second quarter of 2025.
Advisors: Goodwin Procter is serving as legal counsel to NextGen Healthcare and Thoma Bravo. Kirkland & Ellis is serving as legal counsel to MDP.
KEY QUOTES:
“We are delighted to partner with MDP and Thoma Bravo to accelerate our investment in developing and delivering transformational solutions to the ambulatory healthcare marketplace. Our employees, clients, and partners are unified behind our vision of achieving Better Healthcare Outcomes for All. By combining our deep healthcare domain expertise with MDP’s extensive healthcare experience and Thoma Bravo’s renowned software operational expertise, we believe we can deliver on that vision faster.”
David Sides, Chief Executive Officer of NextGen Healthcare
“We are excited to partner with MDP and Thoma Bravo to accelerate the next phase of our growth, and help our clients achieve market leading performance and efficiency fueled by new AI-driven capabilities. We are leveraging AI and automation to elevate every step of the provider and patient journey.”
Srinivas (Sri) Velamoor, President and Chief Operating Officer of NextGen Healthcare
“NextGen Healthcare has a proven track record of delivering innovative software solutions that enable healthcare practices across the country to improve the patient experience. We are excited to partner with NextGen Healthcare’s management team and Thoma Bravo to help the Company expand its software offering and assist even more providers in operating efficiently and delivering seamless care to their patients.”
Jason Shideler, Partner and Co-Head of Healthcare at MDP
“It’s been a joy working alongside David, Sri and the NextGen management team helping to accelerate our long-term mission of Better Healthcare Outcomes for All. We see so much innovation and opportunity ahead, and working with the MDP team again on these opportunities is an exciting endeavor.”
A.J. Rohde, a Senior Partner at Thoma Bravo
“We are incredibly proud of what we have accomplished in partnership with David, Sri and the entire NextGen Healthcare team since our initial investment in 2023. Together, we have significantly accelerated the Company’s business strategy and product roadmap to help deliver exceptional outcomes for providers and patients. We look forward to continuing to apply our operational and software capabilities to drive continued growth.”
Peter Hernandez, a Senior Vice President at Thoma Bravo
