Why Is Healthcare Tech Firm NextGen Healthcare's Stock Trading Higher Today?

Thoma Bravo, a software investment firm, agreed to acquire NextGen Healthcare Inc NXGN for $23.95 per share in cash. 

Last month, NextGen Healthcare said it is exploring various strategic options, including possibly a company sale.

Upon completion of the transaction, NextGen Healthcare will become a privately held company.

The per-share purchase price represents a 46.4% premium to the Company's unaffected closing stock price on August 22 (the last trading day before published market speculation regarding a potential transaction involving the Company) and a 39.2% premium to the 30-day volume-weighted average price for the period ending September 1.

The transaction is expected to close in the fourth calendar quarter of 2023

"Under the terms of the agreement, NextGen Healthcare shareholders will receive significant immediate cash value for their shares. In addition, with Thoma Bravo as a partner, the Company will benefit from increased capital, expertise, and strategic flexibility to accelerate the Company's leadership in providing healthcare technology solutions," said David Sides, President and Chief Executive Officer of NextGen Healthcare.

Price Action: NXGN shares are up 14.40% at $23.50 on the last check Wednesday.