NextGen Healthcare takes on private equity partner to help fund growth

NextGen Healthcare takes on private equity partner: ©NextGen Healthcare

NextGen Healthcare, a provider of electronic health records and practice management software, is gaining a new investment partner as it accelerates its growth strategy, according to the company. Madison Dearborn Partners, a Chicago-based private equity firm with extensive health care experience, announced it will acquire a significant ownership stake in the company alongside current majority owner Thoma Bravo.

The move comes less than two years after Thoma Bravo took NextGen private in 2023. Since then, the software-focused investment firm has worked closely with NextGen’s leadership to modernize its solutions, improve operations, and enhance the customer experience. Now, MDP will join as a co-owner, partnering with Thoma Bravo and NextGen’s executive team to expand the company’s reach and capabilities.

“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.”

NextGen Healthcare, founded in 1974, has long focused on enabling ambulatory practices to improve clinical quality, patient outcomes, and workflow efficiency. Under Thoma Bravo’s ownership, the company has achieved notable organic growth, strengthened its executive bench, and begun integrating AI-driven tools into its platform, according to the company.

According to MDP, the decision to invest in NextGen was driven by the company’s demonstrated ability to deliver impactful technology solutions to providers.

“NextGen Healthcare has a proven track record of delivering innovative software solutions that enable health care practices across the country to improve the patient experience,” said Jason Shideler, partner and co-head of Healthcare at MDP. “We are excited to partner with NextGen Healthcare’s management team and Thoma Bravo to help the company expand its software offering and assist even more providers in operating efficiently and delivering seamless care.”

The transaction is expected to close in the second quarter of 2025, pending regulatory approvals. Thoma Bravo will retain a significant ownership stake and continue to play an active role in shaping NextGen’s future alongside MDP, according to the company.