NextGen Healthcare Teams Up with Madison Dearborn Partners and Thoma Bravo for Growth
Deal News | May 02, 2025 | Thoma Bravo
Madison Dearborn Partners (MDP), a prominent private equity firm, has reached a deal with Thoma Bravo to acquire a significant ownership stake in NextGen Healthcare, a pioneering company in healthcare technology and data solutions. This collaboration aims to accelerate NextGen Healthcare’s growth, building on Thoma Bravo’s initial take-private acquisition in 2023. With a focus on delivering top-tier solutions for the healthcare industry, both investment firms will lend their expertise to enhance NextGen’s operational capabilities and extend its reach in the healthcare sector. The integration of AI-driven capabilities is set to revolutionize patient and provider experiences, aligning with NextGen’s mission for better healthcare outcomes for all. Subject to regulatory approval, the transaction is anticipated to close in 2025. The legal counsels involved are Goodwin Procter for NextGen and Thoma Bravo, and Kirkland & Ellis for MDP.
Sectors
- Healthcare Technology
- Private Equity
- Software
Geography
- United States – Both Madison Dearborn Partners and Thoma Bravo are based in the U.S., as is NextGen Healthcare, which is a significant player in the American healthcare technology industry.
- Global – Thoma Bravo's investor operations span globally, indicating broader implications for international markets in software and healthcare technology.
Industry
- Healthcare Technology – NextGen Healthcare operates in the healthcare technology sector, providing electronic health records, practice management software, and other data solutions.
- Private Equity – Madison Dearborn Partners and Thoma Bravo are both involved in private equity investments, focusing on strategic growth in sectors like software and technology.
- Software – Given that Thoma Bravo specializes in investments in software companies and NextGen Healthcare provides software solutions, the software industry is relevant.
Financials
- US$179 billion – Thoma Bravo's assets under management as of December 31, 2024.
- More than $31 billion – Aggregate capital raised by Madison Dearborn Partners.
- Approximately US$275 billion – Enterprise value of companies Thoma Bravo has invested in over 20+ years.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| NextGen Healthcare, Inc. | Target Company | Company | A leading healthcare technology company offering innovative solutions for electronic health records and practice management. |
| Madison Dearborn Partners, LLC (MDP) | Bidding Company | Company | A leading private equity firm in Chicago focusing on diversified investments across various industry verticals. |
| Thoma Bravo | Selling Company (Retaining Stake) | Company | A top private equity firm renowned for its software-focused investment strategies. |
| David Sides | CEO of NextGen Healthcare | Person | Chief Executive Officer at NextGen Healthcare, leading the company's vision for improving healthcare outcomes. |
| Srinivas (Sri) Velamoor | President and COO of NextGen Healthcare | Person | President and Chief Operating Officer at NextGen Healthcare, focusing on growth and AI integration. |
| A.J. Rohde | Senior Partner at Thoma Bravo | Person | Senior Partner at Thoma Bravo, involved in the partnership for NextGen Healthcare's development. |
| Peter Hernandez | Senior Vice President at Thoma Bravo | Person | Senior Vice President at Thoma Bravo, engaged in NextGen Healthcare's strategic growth efforts. |
| Jason Shideler | Partner and Co-Head of Healthcare at MDP | Person | Partner at MDP, focusing on expanding NextGen Healthcare's offering and efficiency. |
| Goodwin Procter LLP | Legal Counsel | Company | Legal counsel for NextGen Healthcare and Thoma Bravo. |
| Kirkland & Ellis, LLP | Legal Counsel | Company | Legal counsel for Madison Dearborn Partners in the transaction. |