Tampa, FL. & Boston, MA – June 26, 2019 – Nextech Systems (the “Company” or “Nextech”), a leading provider of healthcare technology solutions for specialty physician practices, today announced that funds affiliated with Thomas H. Lee Partners, L.P. (“THL”), a premier private equity firm investing in middle-market growth companies, have acquired Nextech from Francisco Partners and its other stockholders. Terms and conditions for the transaction were not disclosed.
Founded in 1997 and headquartered in Tampa, Florida, Nextech is a complete healthcare technology solution for over 11,000 providers and 4,000 practices across a variety of core specialties. By leveraging the Company’s innovative, intuitive HCIT software solutions, including its purpose-built cloud platform, best-in-class practice management and electronic medical record workflow and integrated patient engagement and revenue cycle management software, Nextech streamlines back-end processes and enhances optimization for its providers and practices - thereby driving higher patient volumes, increased customer satisfaction, and improved efficiency.
Building on the Company’s proven track record of growth, market leadership, and innovation, THL will support Nextech’s continued success by contributing operational and financial resources and strategic expertise as the Company further enhances its cloud platform and pursues strategic M&A opportunities. Nextech will retain its corporate headquarters in Tampa, Florida, and will continue to be led by its Chief Executive Officer, Mike Scarbrough and the other members of its senior management team.
“We are thrilled to partner with THL, whose proven track record with software platforms, operational expertise, and keen eye for acquisition opportunities will accelerate our continued growth, innovation, and product leadership among technology providers to specialty healthcare practices,” said Mike Scarbrough, CEO of Nextech. “We believe this strategic partnership with THL will serve as a vehicle to drive us forward in our next chapter of growth and continued success.”
“We are excited to partner with Mike Scarbrough and Nextech’s experienced management team,” said Laura Grattan, Managing Director at THL. “Nextech has created an exceptional healthcare software platform, consistently improving its solutions to empower specialty physicians to optimize their operations, strengthen patient interactions, and maximize efficiency. Nextech is well-positioned to expand its market position with a growing suite of cloud products across a broad set of specialties, and we look forward to investing in this organization to accelerate growth alongside an outstanding executive team.”
“We are proud to have partnered with Nextech through its significant growth over the last few years, having expanded into multiple new specialties and developed a suite of cloud-based solutions” added Ezra Perlman, Co-President at Francisco Partners. “It was a pleasure to work alongside Mike and the rest of the passionate Nextech team, and we wish them every success in the future.”
Aeris Partners acted as financial advisor and Paul Hastings acted as legal advisor to Nextech and Francisco Partners. Kirkland & Ellis acted as legal advisor, PricewaterhouseCoopers acted as accounting advisor, and William Blair & Co. acted as financial advisor to THL.
About Thomas H. Lee Partners, L.P.
Thomas H. Lee Partners, L.P. ("THL") is a premier private equity firm investing in growth companies headquartered in North America. THL focuses its investment activity across four industry sectors: Business & Financial Services, Consumer & Retail, Healthcare and Media, Information Services & Technology. Since its founding in 1974, THL has raised more than $25 billion of equity capital, invested in over 140 companies and completed more than 400 add-on acquisitions representing an aggregate enterprise value at acquisition of over $200 billion. With dedicated sector and operating teams, THL brings deep domain expertise and resources to build great companies by helping to accelerate growth, improve operations and drive long-term sustainable value in partnership with management. For more information on THL, please visit www.THL.com
About Francisco Partners
Francisco Partners is a leading global private equity firm that specializes in investments in technology and technology-enabled businesses. Since its launch over 19 years ago, Francisco Partners has raised over $14 billion in committed capital and invested in more than 200 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where its deep sectoral knowledge and operational expertise can help companies realize their full potential. For more information on Francisco Partners, please visit www.franciscopartners.com.
For Thomas H. Lee Partners, L.P.:
Sard Verbinnen & Co
Robin Weinberg/Cameron Seligmann
+1 212 687 8080