TPG strikes $1.4B deal to buy EHR, practice management software firm Nextech

Asset management firm TPG is buying healthcare IT company Nextech from Thomas H. Lee Partners for $1.4 billion, the company announced Wednesday.

Tampa, Florida-based Nextech provides electronic medical record and practice management software to specialty physician practices. The company services more than 11,000 physicians and over 60,000 office staff members in the clinical specialties of dermatology, ophthalmology, orthopedics, plastic surgery, and medical spa practices, according to a press release.

TPG is investing in Nextech through TPG Capital, its U.S. and European late-stage private equity platform.

TPG has $137 billion  of assets under management.

The deal will increase TPG Capital's presence in the healthcare services market and the investment builds on TPG's "thematic focus on healthcare IT solutions that enhance provider productivity and enable high-quality patient care across settings,” TPG partners Katherine Wood and Art Heidrich said in a statement.

The firm's other investments in the healthcare IT space include Lyric (formerly known as ClaimsXten), WellSky and IQVIA.

“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 a statement. “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.”

 The deal is expected to close in the third quarter of 2023.

“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," Wood and Heidrich said.

The healthcare IT company developed practice management and electronic medical record workflow and integrated patient engagement and revenue cycle management software to help streamline back-end processes and enhance optimization for providers and practices.

Thomas H. Lee Partners bought Nextech in 2019 for a reported $500 million from Francisco Partners, PEHub reported.

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.

TripleTree, LLC, Guggenheim Securities, LLC, and UBS Investment Bank served as financial advisors to TPG, and Ropes & Gray LLP served as legal counsel.