TPG, a global alternative asset management firm, announced today that it has signed a definitive agreement to acquire Nextech, a leading provider of clinical and administrative healthcare technology solutions for specialty physician practices, from Thomas H. Lee Partners (THL) for $1.4 billion. TPG is investing in Nextech through TPG Capital, its U.S. and European late-stage private equity platform.
“Nextech’s goal is to simplify the healthcare experience so physicians can focus on what matters most: their patients,” said Bill Lucchini, CEO of Nextech. “In TPG, we have found a partner who supports our mission to simplify the process of delivering excellent care and who brings to our organization distinct experience building businesses in the healthcare and software sectors. We’re excited to work together to grow our capabilities and strengthen our position as the end-to-end technology platform for specialty care providers.”
Nextech provides comprehensive electronic medical record and practice management software to specialty physician practices. The company’s intelligent, cloud-based solutions are designed to meet the unique workflow requirements of its customers, helping specialty practices enhance operations and better support patient care and satisfaction using a single, integrated platform.
“Our investment in Nextech builds on our thematic focus on healthcare IT solutions that enhance provider productivity and enable high-quality patient care across settings,” said TPG’s Katherine Wood and Art Heidrich. “Nextech’s SaaS and payment solutions are purpose-built for specialty providers and create meaningful workflow and efficiency benefits for its customers. We look forward to partnering with Bill and the Nextech team to expand the reach and impact of the platform.”
Leveraging the insights of its healthcare and software teams, TPG has a long history of backing and growing leading healthcare IT companies. Select investments have included Lyric (formerly known as ClaimsXten), WellSky, and IQVIA.
“Nextech has pioneered first-in-class software that empowers physicians to singularly focus on providing high-quality care to their patients,” said THL’s Ganesh Rao and Mark Bean. “We deeply value our partnership with the Nextech team, and we’re proud of the work we’ve done together to build such a great company. We know that they are well-positioned for continued success as they embark on the next leg of their journey with TPG.”
The transaction is subject to regulatory review and the satisfaction of customary closing conditions, and is expected to close in the third quarter of 2023. TripleTree, LLC, Guggenheim Securities, LLC, and UBS Investment Bank served as financial advisors to TPG, and Ropes & Gray LLP served as legal counsel. William Blair served as lead financial advisor to Nextech and THL, and Raymond James and Jamieson served as financial advisors. Kirkland & Ellis served as legal counsel to Nextech and THL.
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