NextGen Healthcare Announces Agreement to Acquire TSI Healthcare
November 30 2022 - 6:00AM
Business Wire
NextGen Healthcare, Inc. (Nasdaq: NXGN), a leading provider of
innovative cloud-based healthcare technology solutions, today
announced it has signed a definitive agreement to acquire TSI
Healthcare, a privately held value-added reseller located in Chapel
Hill, NC. The acquisition shall be deemed effective 11:59 p.m. on
November 30, 2022. The consideration is comprised of an upfront
amount of $68 million, which will be paid in cash with contingent
consideration of up to $22 million in cash in the form of an
earnout, subject to achieving certain financial targets through
March 31, 2025. The acquisition is expected to contribute
approximately $10 to 12 million of revenue in the remaining four
months of fiscal 2023 and will be accretive to adjusted EBITDA and
cash flow within a year. The company plans to update guidance when
it reports its fiscal 2023 third quarter results.
“TSI was one of our premier clinical content and technical
services partners specializing in comprehensive solutions for
specialty physician practices,” said David Sides, president and
chief executive officer of NextGen Healthcare. “This acquisition
enables NextGen Healthcare to expand its presence in key
specialties including rheumatology, pulmonology and
cardiology.”
“TSI Healthcare has been part of the NextGen Healthcare family
over 16 years, developing specialty specific solutions exclusively
on NextGen Healthcare’s platform,” said David Dickson, Jr.,
president and chief executive officer of TSI Healthcare. “We’re
excited to extend our services expertise with NextGen Healthcare’s
product and services leadership to further solidify NextGen
Healthcare as among the most trusted names in ambulatory
healthcare.”
About NextGen Healthcare, Inc.
NextGen Healthcare, Inc. (Nasdaq: NXGN) is a leading provider of
innovative healthcare technology solutions. We are reimagining
ambulatory healthcare with award-winning solutions that enable
high-performing practices to create healthier communities. We
partner with medical, behavioral and dental providers in their
journey toward whole person health and value-based care. Our highly
integrated, intelligent and interoperable solutions go beyond EHR
and Practice Management to increase clinical quality and
productivity, enrich the patient experience and drive superior
financial performance. We are on a quest to achieve better
healthcare outcomes for all. Learn more at nextgen.com, and follow
us on Facebook, Twitter, LinkedIn, YouTube and Instagram.
About TSI Healthcare
TSI Healthcare® is a national leader in the sales and support of
customized NextGen® Practice Management and Electronic Health
Record software. TSI Healthcare continues to deliver innovative,
specialty-specific solutions to maximize revenue, reduce costs, and
advance patient care through unmatched customer service that
focuses on the human element. TSI's support teams include NextGen
Certified Professionals, clinicians, and former practice
administrators, based in the U.S. In addition to core products, TSI
Healthcare also offers Revenue Cycle Management, Patient Portal,
Population Health Management, Cloud Hosting and more. For
additional information, visit www.tsihealthcare.com.
SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS
This communication contains statements which, to the extent they
are not statements of historical or present fact, constitute
"forward-looking statements" under the securities laws, including
but not limited to those related to the anticipated accretive
nature of the acquisition to NextGen Healthcare, as well as
statements related to NextGen Healthcare’s fiscal 2023 financial
outlook and guidance. From time to time, oral or written
forward-looking statements may also be included in other
information released to the public. These forward-looking
statements are intended to provide the Company’s management's
current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to
be valid. Forward-looking statements can be identified by the use
of words such as "believe," "expect," "expectations," "plans,"
"strategy," "prospects," "estimate," "project," "target,"
"anticipate," "will," “will continue,” “potential,” "should,"
"see," "guidance," "outlook," "confident," "on track" and other
words of similar meaning. Forward-looking statements may include,
among other things, statements relating to future sales, earnings,
cash flow, results of operations, uses of cash, share repurchases,
tax rates, R&D spend, other measures of financial performance,
potential future plans, strategies or transactions, and other
statements that are not historical facts. All forward-looking
statements involve risks, uncertainties and other factors that may
cause actual results to differ materially from those expressed or
implied in the forward-looking statements. For those statements, we
claim the protection of the safe harbor for forward-looking
statements contained in the U.S. Private Securities Litigation
Reform Act of 1995. Such risks, uncertainties and other factors
include, without limitation: (1) successful integration of TSI
Healthcare’s personnel, systems and business; (2) the scope,
nature, impact or timing of the acquisition, including among other
things the integration of or with other businesses and realization
of synergies and opportunities for growth and innovation and
incurrence of related costs and expenses; (3) the effect of
economic conditions in the industries and markets in which NextGen
Healthcare operates and any changes therein; (4) company and
customer-directed cost reduction efforts and restructuring costs
and savings and other consequences thereof; (5) new business and
investment opportunities; (6) the ability to realize the intended
benefits of organizational changes; (7) the outcome of legal
proceedings, investigations and other contingencies; (8) negative
effects of the announcement of the acquisition on the market price
of NextGen Healthcare’s common stock and/or on its financial
performance; (9) the possibility that the anticipated benefits from
the acquisition cannot be realized in full or at all or may take
longer to realize than expected, including risks associated with
third party contracts containing consent and/or other provisions
that may be triggered by the proposed transaction; and (10) risks
associated with transaction-related litigation; and (11) any other
risks which may be relevant to this transaction but are not
explicitly enumerated herein. For additional information on
identifying factors that may cause actual results to vary
materially from those stated in forward-looking statements, see the
reports of NextGen Healthcare on Forms 10-K, 10-Q and 8-K filed
with or furnished with the Securities and Exchange Commission from
time to time. Any forward-looking statement speaks only as of the
date on which it is made, and NextGen Healthcare assumes no
obligation to update or revise such statement, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221130005449/en/
Media Contact Tami Andrade 949-517-2380
tandrade@nextgen.com
Investor Relations Contact James Hammerschmidt
949-237-6112 JHammerschmidt@nextgen.com
NextGen Healthcare (NASDAQ:NXGN)
Historical Stock Chart
From Apr 2024 to May 2024
NextGen Healthcare (NASDAQ:NXGN)
Historical Stock Chart
From May 2023 to May 2024