NextGen Healthcare, Inc. (NASDAQ:NXGN) (“NextGen Healthcare” or “the Company”), a leading provider of ambulatory-focused technology solutions, today announced an agreement to acquire OTTO Health (“OTTO”). The proposed acquisition is expected to close this month, subject to the satisfaction of closing conditions.
Driven by the convenience-seeking and technology savvy healthcare consumer of today, demand for virtual visits is on the rise. The use of telehealth is especially important for people with chronic conditions and 20% of the U.S. population that lives in rural areas where access to health care, particularly specialty care, is often lacking. OTTO virtual visits provide both the convenience and integrated approach that patients and providers demand. The solution is device agnostic, doesn’t require the download or install of a separate app, and patients have multiple options for scheduling an appointment, including directly through the patient portal.
“The integration of OTTO Virtual Visits and the Medfusion Patient Experience Platform into the EHR will have a profound impact on patients and the way they engage with their providers,” said Rusty Frantz, President and Chief Executive Officer of NextGen Healthcare. “We’re eager to equip providers with a modern, integrated, and easy-to-use virtual visit capability that removes barriers to care, enhances patient loyalty and positions them well for the future.”
“Virtual visits lower cost and improve outcomes, but to maximize the potential benefits, the capability must be part of an integrated and coordinated solution,” said Sarah Green, President and CEO of OTTO Health. “We look forward to becoming a permanent member of the NextGen Healthcare family so we can collaboratively support provider groups focused on innovation and meeting their value-based care goals.”
About NextGen Healthcare, Inc.
We empower the transformation of ambulatory care—partnering with medical, behavioral and dental providers in their journey to value-based care to make healthcare better for everyone. We go beyond EHR and PM. Our integrated solutions help increase clinical productivity, enrich the patient experience, and ensure healthy financial outcomes. We believe in better. Learn more at nextgen.com, and follow us on Facebook, Twitter, LinkedIn and Instagram.
About OTTO Health
OTTO Health is a Telehealth platform that seamlessly integrates into Electronic Health Records systems, allowing providers to have video visits with their patients as part of their normal workflows. OTTO partners closely with EHR providers to create a streamlined user experience, while maintaining the EHR/PM system as the single source of truth. https://www.ottohealth.com/
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This communication contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide the Company’s management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “will continue,” “potential,” “should,” “see,” “guidance,” “outlook,” “confident,” “on track” and other words of similar meaning. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates, R&D spend, other measures of financial performance, potential future plans, strategies or transactions, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) successful integration of OTTO’s personnel, systems and business; (2) the scope, nature, impact or timing of the proposed acquisition, including among other things the integration of or with other businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs and expenses; (3) the effect of economic conditions in the industries and markets in which the Company operates in the U.S. and globally and any changes therein; (4) company and customer-directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (5) new business and investment opportunities; (6) the ability to realize the intended benefits of organizational changes; (7) the outcome of legal proceedings, investigations and other contingencies; (8) negative effects of the announcement or pendency of the proposed acquisition on the market price of the Company’s common stock and/or on its financial performance; (9) the occurrence of events that may give rise to a right of one or both of the parties to terminate the agreement; (10) the possibility that the anticipated benefits from the proposed acquisition cannot be realized in full or at all or may take longer to realize than expected, including risks associated with third party contracts containing consent and/or other provisions that may be triggered by the proposed transaction; (11) risks associated with transaction-related litigation; and (12) the possibility that any opinions, consents, approvals or rulings required in connection with the separation transactions will not be received or obtained within the expected time frame, on the expected terms or at all. There can be no assurance that the proposed acquisition will in fact be consummated in the manner described or at all. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the reports of NextGen Healthcare on Forms 10-K, 10-Q and 8-K filed with or furnished to the Securities and Exchange Commission from time to time. Any forward-looking statement speaks only as of the date on which it is made, and NextGen Healthcare assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.