NextGen Healthcare Announces Leadership Succession and New PE Partnership
Deal News | Jun 06, 2025 | Thoma Bravo
NextGen Healthcare has announced that Madison Dearborn Partners (MDP) has completed the acquisition of a significant ownership stake in the company, alongside Thoma Bravo. This partnership aims to accelerate NextGen’s advancements and market reach. MDP will work with Thoma Bravo and NextGen’s management to increase annual R&D investment over the next three years and expand healthcare solutions and services. Coinciding with this investment, NextGen Healthcare will undergo a leadership transition, appointing current President and COO, Srinivas (Sri) Velamoor, as CEO after the transition period. The current CEO, David Sides, will remain on the board and retain a material investor role. The succession is a strategic move to enhance NextGen Healthcare’s growth and innovation, with Velamoor taking a pivotal role in driving the company’s expansion supported by PE firms MDP and Thoma Bravo. The transition reflects a longstanding commitment to reinforce the company’s position as a leader in healthcare technology. Advisors involved in the transaction included Goodwin Procter LLP, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, and Evercore.
Sectors
- Healthcare Technology
- Private Equity
Geography
- United States – NextGen Healthcare, Madison Dearborn Partners, and Thoma Bravo are all based in the United States, with significant operations impacting the U.S. healthcare and technology sectors.
Industry
- Healthcare Technology – NextGen Healthcare operates within the healthcare technology sector, offering innovative, cloud-based healthcare solutions focusing on electronic health records and practice management.
- Private Equity – Madison Dearborn Partners and Thoma Bravo are both private equity firms engaging in investments that influence company growth and strategic developments within NextGen Healthcare.
Financials
- Material increase in annual R&D investment over the next three years – Investment strategy to bolster NextGen's growth and innovation.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| NextGen Healthcare, Inc. | Target Company | Company | A leading provider of cloud-based healthcare technology solutions. |
| Madison Dearborn Partners, LLC (MDP) | Bidding Company/Investor | Company | A private equity investment firm that acquired a significant stake in NextGen Healthcare. |
| Thoma Bravo | Co-Investor | Company | A software investment firm with a significant ownership in NextGen Healthcare. |
| Srinivas (Sri) Velamoor | Incoming CEO | Person | Currently NextGen's President and COO, will succeed David Sides as CEO. |
| David Sides | Outgoing CEO | Person | Current CEO of NextGen Healthcare, who will remain on the Board of Directors. |
| Goodwin Procter LLP | Legal Advisor | Company | Legal advisor to NextGen Healthcare. |
| Morgan Stanley & Co. LLC | Lead Financial Advisor | Company | Lead financial advisor to NextGen Healthcare. |
| J.P. Morgan Securities LLC | Financial Advisor | Company | Financial advisor to NextGen Healthcare. |
| Evercore | Financial Advisor | Company | Financial advisor to NextGen Healthcare. |
| Kirkland & Ellis, LLP | Legal Advisor | Company | Legal counsel to Madison Dearborn Partners. |