NextGen Healthcare, a provider of cloud-based healthcare technology solutions, announced that funds affiliated with Madison Dearborn Partners (MDP), a leading private equity investment firm based in Chicago, have completed their acquisition of a significant ownership stake in NextGen Healthcare. And Thoma Bravo retains a substantial ownership position in NextGen Healthcare. MDP will partner with Thoma Bravo management to accelerate NextGen Healthcare’s growth.
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. And as partners, MDP and Thoma Bravo plan to jointly underwrite a material increase in annual R&D investment over the next three years and work with NextGen Healthcare’s leadership team to accelerate the delivery of best-in-class solutions and services to more healthcare clients.
NextGen Healthcare also revealed that its Board of Directors has appointed NextGen Healthcare’s President and Chief Operating Officer Srinivas (Sri) Velamoor, as Chief Executive Officer, effective following a planned transition period. And Velamoor will succeed David Sides, who will continue to serve on the Board and remain a material investor in NextGen Healthcare. Sides will be working closely with Velamoor to ensure a seamless transition and will continue to support the company’s strategic priorities throughout the transition period and beyond. Velamoor was instrumental in driving NextGen Healthcare’s growth and innovation agenda in his current role and will assume full responsibility for leading the Company through its continued expansion and development, which is underpinned by the increased investment and ongoing support from MDP and Thoma Bravo.
The choice to elevate an established industry leader and company insider via a thoughtful and seamless transition process reflects the continued commitment of the NextGen Healthcare Board and leadership team to sustaining the Company’s growth and performance momentum and delivering market-leading services to clients.
Advisors: Goodwin Procter served as legal counsel to NextGen Healthcare. And Morgan Stanley served as lead financial advisor and J.P. Morgan Securities and Evercore also served as financial advisors to NextGen Healthcare. And Kirkland & Ellis served as legal counsel to MDP.
KEY QUOTES:
“It has been an honor to work alongside Sri in leading NextGen Healthcare through its transformation the last several years. I am grateful to our entire NextGen Healthcare team and to our clients for their trust and partnership. I am excited to support Sri as he takes the reins and leads us into this next phase of accelerating growth and impact for our clients in partnership with MDP and Thoma Bravo.”
David Sides
“Our investment strategy centers around partnership with management. When we invested in NextGen Healthcare it was apparent to us how integral Sri has been to all aspects of the Company’s success. The succession announcement today is a natural progression from his previous leadership roles with the company. We are excited for this next chapter with Sri at the helm, and we are pleased that David will continue to play an important role in the success of NextGen Healthcare as a member of the Board.”
Peter Hernandez, a Senior Vice President at Thoma Bravo
“David’s vision and leadership have been instrumental in further cementing NextGen Healthcare as a category leader in the ambulatory Electronic Health Record space. We are excited to partner with him and Sri to implement a succession plan for the Company and its clients as NextGen Healthcare continuously builds momentum and delivers market leading solutions and a world class service experience.”
Jason Shideler, Partner and Co-Head of Healthcare at MDP
“We are excited to welcome the MDP team as strategic partners and look forward to continuing to work with Sri and David in their new roles as they effect a seamless transition and lead this storied healthcare technology franchise into the next chapter of its growth and innovation journey.”
A.J. Rohde, Senior Partner at Thoma Bravo
“I am humbled and privileged to be entrusted with the leadership of NextGen Healthcare’s incredible global team and to lead us through our next phase of growth and innovation. Our colleagues, clients, and partners are unified behind our vision of achieving Better Healthcare Outcomes for All. And we are incredibly excited to partner with Thoma Bravo and MDP to unlock the many opportunities in front of us to elevate practice performance and reimagine the provider and patient experience.”
Srinivas (Sri) Velamoor
