Global alternative asset management firm TPG is building up its healthcare IT portfolio with a $1.4 billion acquisition of medical specialty EHR developer Nextech from private equity firm Thomas H. Lee Partners.

TPG oversees $137 billion in assets and will complete the Nextech transaction via its U.S. and European late-stage private equity platform, TPG Capital. When collaborating with a new company, TPG increases its value by investing in its capital, growth, impact, real estate, and market solutions.

Nextech develops EHR and practice management software for specialty physician practices in dermatology, ophthalmology, orthopedics, plastic surgery, and Med Spa. It is currently used by over 11,000 physicians and more than 60,000 office staff members.

“Our investment in Nextech builds on our thematic focus on healthcare IT solutions that enhance provider productivity and enable high-quality patient care across settings. Nextech’s SaaS and payment solutions are purpose-built for specialty providers and create meaningful workflow and efficiency benefits for its customers,” said TPG Partner Katherine Wood and Technology Investor Art Heidrich in a statement.

Earlier this year, TPG teamed up with Novant Health to create a national imaging center management company to expand Novant’s wholly-owned subsidiary MedQuest Associates and its network of 50 outpatient imaging centers across the U.S.

Additionally, TPG took the reins of Change Healthcare’s claims editing business, ClaimsXten, through TPG Capital for $2.2 billion, allowing the controversial Change-UnitedHealth deal to move forward amid antitrust uncertainty about its potential impact.

TPG has also invested in software companies WellSky and IQVIA.

The deal with Nextech is subject to regulatory approval and is expected to close in Q3 2023.

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