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Private equity firm Thoma Bravo agreed to acquire patient record software company NextGen Healthcare (NASDAQ:NXGN) for $23.95 a share in cash. NextGen rose 15% in premarket trading.
The per-share price represents a 46.4% premium to NextGen's price on Aug. 22, the last day prior to takeover speculation, according to a statement on Wednesday. The transaction, which is not subject to a financing condition, is expected to close in Q4.
The announcement comes after Bloomberg reported on Monday that Thoma Bravo was in advanced discussions for a sale to NextGen (NXGN). That report followed a Reuters story late last month that NextGen was exploring options, including a sale.
NextGen (NXGN) competitors include Athenahealth, Oracle (ORCL), eClinicalWorks, Epic Systems, Greenway Health, Veradigm (MDRX), and Modernizing Medicine, according to the company's latest 10-K filing.
Morgan Stanley is acting as financial advisor to NextGen (NXGN), and Latham & Watkins LLP is acting as legal advisor. William Blair & Company is acting as financial advisor to Thoma Bravo, and Goodwin Procter LLP is acting as legal advisor.
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