NextGen Healthcare, a provider of cloud-based healthcare technology solutions, has signed a definitive agreement to acquire TSI Healthcare, a value-added reseller located in Chapel Hill, North Carolina. The acquisition is valued at $68 million in cash, with the possibility of an additional $22 million in cash through an earnout mechanism, contingent on financial targets being met by March 31, 2025. The acquisition is expected to generate $10 to $12 million in revenue for the remaining four months of fiscal 2023 and will be accretive to adjusted EBITDA and cash flow within a year.
TSI Healthcare has been a long-standing partner of NextGen Healthcare, specializing in comprehensive solutions for specialty physician practices. This acquisition allows NextGen Healthcare to expand its presence in key specialties, such as rheumatology, pulmonology, and cardiology.
About NextGen Healthcare: NextGen Healthcare, Inc. provides healthcare technology solutions aimed at reimagining ambulatory healthcare with a focus on whole person health and value-based care. The company offers integrated, intelligent, and interoperable solutions to medical, behavioral, and dental providers.
About TSI Healthcare: TSI Healthcare is a national leader in the sales and support of customized NextGen Practice Management and Electronic Health Record software. They offer specialty-specific solutions that aim to maximize revenue, reduce costs, and advance patient care. TSI Healthcare provides support through NextGen Certified Professionals, clinicians, and former practice administrators in the United States. In addition to core products, they offer services like Revenue Cycle Management, Patient Portal, Population Health Management, and Cloud Hosting.
