Madison Dearborn Partners to Acquire Significant Stake in NextGen Healthcare

What You Should Know: 

– Madison Dearborn Partners, LLC (MDP), a private equity firm, announced it has signed an agreement to acquire a significant ownership position in NextGen Healthcare, Inc., a provider of innovative healthcare technology and data solutions. 

– Thoma Bravo, a software investment firm that acquired NextGen Healthcare in 2023, will retain a significant ownership stake. Both MDP and Thoma Bravo will partner with NextGen Healthcare’s management team to foster continued growth.

NextGen Healthcare Background

Founded in 1974, NextGen Healthcare provides Electronic Health Record (EHR) and Practice Management software primarily focused on the ambulatory care market, helping practices improve patient outcomes, clinical quality, and productivity. Since taking the company private in 2023, Thoma Bravo has supported NextGen Healthcare in modernizing its solutions and operating structure, leading to enhanced client experiences, meaningful organic growth, improved profit margins, and the addition of new executive leadership.

New Partnership to Accelerate Growth

The addition of MDP as an investment partner alongside Thoma Bravo is aimed at further accelerating NextGen Healthcare’s growth trajectory. The firms will support the company’s leadership team, led by CEO David Sides and President/COO Srinivas (Sri) Velamoor, in executing its strategy to deliver best-in-class solutions to a broader range of healthcare clients.

“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,” said David Sides, CEO of NextGen Healthcare. “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.”

The transaction is subject to customary regulatory approvals and is anticipated to close in the second quarter of 2025. Financial terms of the deal were not disclosed.