TPG to Acquire Nextech: A Game-Changing Move in Healthcare IT Solutions

In a major acquisition move, TPG, a global asset management firm, has announced its definitive agreement to acquire Nextech, a leading provider of healthcare technology solutions for specialty physician practices. The deal, valued at $1.4 billion, marks a significant milestone in TPG's commitment to investing in healthcare IT solutions that enhance provider productivity and deliver high-quality patient care.

Nextech has been at the forefront of the healthcare technology industry since 1997, offering comprehensive electronic medical record and practice management software to specialty physician practices. With its intelligent, cloud-based solutions, Nextech caters to the unique workflow requirements of its customers, enabling them to enhance operations and better support patient care and satisfaction using a single, integrated platform.

By acquiring Nextech, TPG aims to leverage its expertise in the healthcare and software sectors to expand the reach and impact of the platform. The acquisition will enable Nextech to further simplify the healthcare experience for physicians, allowing them to focus on what matters most—their patients. TPG's investment will support Nextech's mission to deliver excellent care by building a robust technology platform for specialty care providers.

Katherine Wood and Art Heidrich from TPG expressed their excitement about the partnership with Nextech, highlighting the meaningful workflow and efficiency benefits that Nextech's SaaS and payment solutions bring to specialty providers. TPG's history of backing and growing leading healthcare IT companies, such as Lyric, WellSky, and IQVIA, positions them as the ideal partner to drive Nextech's growth and enhance its capabilities.

Leading private equity firm Thomas H. Lee Partners (THL), the current owner of Nextech, also expressed their confidence in the deal. Ganesh Rao and Mark Bean from THL stated that Nextech's software has empowered physicians to provide high-quality care and that Nextech is well-positioned for continued success as it embarks on its journey with TPG.

The acquisition is pending regulatory review and the satisfaction of customary closing conditions, with the expected completion in the third quarter of 2023. Financial advisors TripleTree, LLC, Guggenheim Securities, LLC, and UBS Investment Bank worked with TPG, while Ropes & Gray LLP provided legal counsel. William Blair served as lead financial advisor to Nextech and THL, with Raymond James and Jamieson as additional financial advisors. Kirkland & Ellis served as legal counsel to Nextech and THL.

With this acquisition, Nextech aims to continue providing innovative solutions and services that drive efficiency, fuel growth, and enhance the patient care experience for its more than 11,000 physicians and over 60,000 office staff members. Nextech's focus on clinical specialties, including Dermatology, Ophthalmology, Orthopedics, Plastic Surgery, and Med Spa, positions the company as a comprehensive healthcare technology solution for specialty providers.

TPG, founded in San Francisco in 1992, is a leading global alternative asset management firm with $137 billion of assets under management and investment and operational teams worldwide. Through its multi-strategy platforms, TPG invests in various sectors, including Capital, Growth, Impact, Real Estate, and Market Solutions. With a commitment to collaboration, innovation, and inclusion, TPG combines deep product and sector experience with broad capabilities and expertise to deliver differentiated insights and add value to its fund investors, portfolio companies, management teams, and communities.

About Thomas H. Lee Partners

Thomas H. Lee Partners, L.P. (THL) is a premier private equity firm specializing in middle-market growth companies. With a focus on the Healthcare, Financial Technology & Services, and Technology & Business Solutions sectors, THL brings deep sector expertise and dedicated internal operating resources to transform and build great companies of lasting value. Over the years, THL has raised more than $34 billion of equity capital, invested in over 160 companies, and completed more than 500 add-on acquisitions, reflecting its commitment to accelerating growth, improving operations, and driving long-term sustainable value.

In conclusion, TPG's acquisition of Nextech marks a significant milestone in the healthcare IT industry. With TPG's expertise and investment, Nextech aims to strengthen its position as the leading end-to-end technology platform for specialty care providers, simplifying the healthcare experience and enhancing patient care across clinical specialties. The partnership between TPG and Nextech is set to revolutionize healthcare IT solutions, benefiting physicians, healthcare providers, and patients alike.