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NextGen Healthcare Signs Definitive Agreement to Acquire TSI Healthcare

NextGen Healthcare will work to expand specialty care services as a result of acquiring health IT vendor TSI Healthcare.

NextGen Healthcare has signed a definitive agreement to acquire fellow health IT vendor TSI Healthcare, a privately held value-added reseller located in North Carolina, for an upfront amount of $68 million.

The agreement will allow NextGen Healthcare to accelerate and expand its specialty care services in several areas, such as cardiology.

“TSI was one of our premier clinical content and technical services partners specializing in comprehensive solutions for specialty physician practices,” David Sides, president and chief executive officer of NextGen Healthcare, said in a press release. “This acquisition enables NextGen Healthcare to expand its presence in key specialties, including rheumatology, pulmonology, and cardiology.”

The all-cash deal will include a contingent consideration of up to $22 million in the form of an earnout, which will be subject to specific financial targets through March 31, 2025

The purchase, deemed effective November 30, 2022, will also bring financial perks creating nearly $10 million to $12 million of revenue. 

“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.”

This move comes as NextGen Healthcare works on advancements for behavioral healthcare solutions.

Earlier this year, the health IT vendor released its integrated behavioral health suite, which includes new clinical documentation features and workflow functionality. The NextGen Behavioral Health Suite is a platform that aims to integrate physical, behavioral health, human services, and oral health in one software solution.

Since its release in April, the integrated behavioral health suite has enhanced the EHR functionality to support the delivery of foster care services.

These services benefit over 672,000 youth who are part of the US foster care system, according to the press release.

“The enhancements to our behavioral health suite were developed with our clients and the communities they serve in mind,” Srinivas (Sri) Velamoor, chief growth and strategy officer for NextGen Healthcare, said at the time. “The addition of foster care capabilities enables providers to expand care to some of the most vulnerable and precious members of our society – our children. And our new automated state-reporting capabilities enable providers to spend more time delivering care and less on regulatory compliance.”

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