PE firm Thoma Bravo has entered into an agreement to acquire NextGen Healthcare, a healthcare software provider, in a deal worth $1.8 billion, including assumed debt. The agreed price is $23.95 per share, representing a significant 46.4% premium to NextGen Healthcare's closing share price prior to the announcement of the transaction.

NextGen Healthcare operates as a cloud-based technology provider for medical practices, offering a range of solutions including electronic health records (EHR), revenue cycle management and data analytics. The company boasts a client base of more than 100,000 providers and reported revenues of $653 million in 2022, up from $596 million in 2021. PE firm Thoma Bravo, with more than 40 years of history and assets under management exceeding $131 billion, is one of the world's largest investors in software and technology.

NextGen Healthcare's acquisition reflects a broader trend in the healthcare technology sector, where several companies have recently gone private. In July, asset management firm TPG bought healthcare information technology company Nextech for $1.4 billion from Thomas H. Lee Partners, and last year PE firm Stone Point Capital bought Tivity Health for $2 billion. PE firms are increasingly attracted to the healthcare sector due to its relative resilience during the economic downturn. According to Refinitiv, global healthcare deals reached US$188bn in the first half of this year, a 43% increase on the previous year.

Among other things, Thoma Bravo recently agreed to sell financial software provider Adenza to Nasdaq for $10.5 billion and also completed an agreement to sell cybersecurity firm Imperva to Thales SA for $3.6 billion.