NextGen Healthcare Announces Agreement to Acquire Medfusion, Inc.
NextGen Healthcare, Inc. (NASDAQ:NXGN) (“NextGen Healthcare” or “the Company”), a leading provider of ambulatory-focused technology solutions, today announced an agreement to acquire Medfusion, Inc. (“Medfusion”) a patient experience platform leader. The proposed acquisition is expected to close in early December 2019, subject to the satisfaction of closing conditions, including the transfer of Medfusion’s data services business out of Medfusion. The total purchase price of $43 million, subject to customary adjustments, will be paid in cash at acquisition completion.
Three powerful ambulatory care market trends make the acquisition of Medfusion a timely next step in NextGen Healthcare’s evolution:
- As patients assume increased financial responsibility for their healthcare, they are more actively involved in making choices based on both cost and quality
- High quality healthcare depends on improved access to care and information
- Patient experience drives patient engagement which is key to improving health outcomes
Medfusion Patient Experience Platform enables key aspects of patient-provider interactions. It includes a modern portal with an attractive, easy-to-use interface designed to run on any device. The platform includes powerful capabilities for patient intake, patient scheduling and patient payment capabilities and is used by more than 16 million patients today.
“We must further engage patients in their healthcare journey as engagement is essential for great outcomes and lowering the cost of care,” said Rusty Frantz, President and Chief Executive Officer of NextGen Healthcare. “Providing the overall experience, tools and meaningful information isn’t just essential, it is increasingly expected by today’s healthcare consumer. The acquisition of Medfusion will add a best-in-class patient access and engagement capability to NextGen Healthcare’s award-winning, fully-integrated ambulatory platform.”
“From our founding, Medfusion has been focused on patient-provider communications and making health IT work for both patients and practices,” said Kim Labow, Chief Executive Officer of Medfusion. “By joining forces with NextGen Healthcare, we will expand our market reach and accelerate NextGen’s mission of empowering the transformation of ambulatory care.”
The acquisition agreement provides for the acquisition of all of the outstanding equity in Medfusion, but will be subject to Medfusion transferring, prior to the closing, its data services business, which is in its infancy and will be transferred out of Medfusion as Greenlight Health.