Madison Dearborn Partners to Acquire Significant Ownership Stake in NextGen Healthcare, Partnering with Thoma Bravo to Drive Continued Growth and Innovation
Chicago-based private equity firm Madison Dearborn Partners, LLC (MDP) has entered into a definitive agreement with Thoma Bravo to acquire a substantial ownership position in NextGen Healthcare, Inc., a leading provider of cutting-edge healthcare technology and data-driven solutions. The agreement marks the beginning of a strategic partnership between two prominent investment firms and NextGen Healthcare’s management team, aimed at accelerating the Company’s growth trajectory, technological innovation, and operational excellence.
Under the terms of the agreement, Thoma Bravo, a preeminent software investment firm, will retain a significant ownership interest in NextGen Healthcare, continuing its role as a strategic investor following its acquisition of the Company in a take-private transaction completed in 2023. This new collaboration with MDP brings together complementary expertise across the healthcare and technology sectors, forming a robust foundation to support NextGen Healthcare’s long-term objectives.
Founded in 1974, NextGen Healthcare has established itself as a trusted partner for ambulatory care providers, offering a comprehensive suite of Electronic Health Record (EHR) and Practice Management solutions tailored to meet the needs of medical practices, health centers, and other outpatient providers. Its solutions aim to enhance clinical quality, boost operational efficiency, and improve overall patient outcomes—an increasingly critical focus in the ever-evolving healthcare landscape.
Since Thoma Bravo’s initial investment, NextGen Healthcare has undergone a strategic transformation, modernizing its product offerings, strengthening its operational infrastructure, and deepening its commitment to innovation. The Company has made notable strides in advancing its platform capabilities, particularly in areas such as interoperability, data analytics, and patient engagement. These enhancements have been complemented by strong organic growth, improved profit margins, and a revitalized executive leadership team with a clear vision for the future.
According to the announcement, MDP’s entry as a major investor will further bolster NextGen Healthcare’s ability to scale its technology, drive product innovation, and deliver superior value to clients. MDP, which has a long track record of successful investments in both the healthcare and software sectors, brings substantial industry knowledge and operational insight to the table.
“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, Chief Executive Officer of NextGen Healthcare. “Our employees, clients, and partners are unified behind our vision of achieving Better Healthcare Outcomes for All. 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.”
Sides, who has led the company since 2021, emphasized that the partnership will help NextGen Healthcare maintain its momentum in deploying advanced technologies such as artificial intelligence (AI), automation, and data integration to simplify clinical workflows and empower providers.
Srinivas (Sri) Velamoor, President and Chief Operating Officer at NextGen Healthcare, also commented on the new collaboration, stating, “We are excited to partner with MDP and Thoma Bravo to accelerate the next phase of our growth, and help our clients achieve market-leading performance and efficiency fueled by new AI-driven capabilities. We are leveraging AI and automation to elevate every step of the provider and patient journey.”
NextGen Healthcare’s product portfolio is deeply embedded in the daily operations of thousands of healthcare organizations across the United States. Its cloud-based solutions support scheduling, billing, clinical documentation, telehealth, and population health management—all within a single platform designed to reduce administrative burdens and enhance the quality of care delivery. With rising demand for integrated and intelligent healthcare IT platforms, the company is well-positioned to expand its market presence and deepen its customer relationships.
MDP, which manages funds with billions in committed capital, sees NextGen Healthcare as a critical enabler in the ongoing transformation of the U.S. healthcare system. The firm is known for investing in high-growth companies in partnership with world-class management teams and other investment partners.
“NextGen Healthcare has a proven track record of delivering innovative software solutions that enable healthcare 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 to their patients.”
From Thoma Bravo’s perspective, the continued collaboration with NextGen Healthcare reflects the success of its prior investment and the opportunities that lie ahead.
“It’s been a joy working alongside David, Sri and the NextGen management team helping to accelerate our long-term mission of Better Healthcare Outcomes for All,” said A.J. Rohde, Senior Partner at Thoma Bravo. “We see so much innovation and opportunity ahead, and working with the MDP team again on these opportunities is an exciting endeavor.”
Peter Hernandez, Senior Vice President at Thoma Bravo, added: “We are incredibly proud of what we have accomplished in partnership with David, Sri and the entire NextGen Healthcare team since our initial investment in 2023. Together, we have significantly accelerated the Company’s business strategy and product roadmap to help deliver exceptional outcomes for providers and patients. We look forward to continuing to apply our operational and software capabilities to drive continued growth.”
The strategic partnership among MDP, Thoma Bravo, and NextGen Healthcare underscores a broader trend in the healthcare technology space, where investment firms are increasingly focused on companies that offer scalable, cloud-based, and AI-enabled solutions capable of meeting the complex and evolving demands of healthcare providers and payers. As regulatory and reimbursement pressures intensify, healthcare organizations are turning to technology partners that can streamline workflows, ensure compliance, and support value-based care models.
The transaction is expected to close following the receipt of customary regulatory approvals and satisfaction of other closing conditions. Financial terms of the agreement were not disclosed.
With this new investment, NextGen Healthcare enters a promising new chapter—backed by two leading firms with complementary capabilities, a shared vision for innovation, and a deep commitment to enabling better health outcomes through smarter technology.
