Haynes Boone Advises NextGen Healthcare in Acquisition of TSI Healthcare
A Haynes and Boone, LLP deal team led by Megan Gess and Simin Sun advised firm client NextGen Healthcare, Inc., a leading provider of innovative cloud-based healthcare technology solutions, in its acquisition of TSI Healthcare. The transaction was completed on Wednesday, Nov. 30.
NextGen Healthcare is a leading provider of innovative healthcare technology solutions. Located in Chapel Hill, N.C., TSI Healthcare is a national leader in the sales and support of customized NextGen Practice Management and EHR software.
Under terms of the agreement, the acquisition 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 million 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.”