Is a Sale in NextGen Healthcare’s Future?

Quality Systems Inc., parent company of NextGen Healthcare Information Systems, which generates three-quarters of its revenue, has avoided a second proxy fight with dissident shareholders in a year and may be looking for a buyer.

QSI, which has seen its stock price cut in half during the past two years, agreed to support three board nominees of a shareholder coalition called the Clinton Group at its annual meeting on August 15. Two of the Clinton Group board members also will be named to the five-member standing Transaction Committee, which will have new marching orders.

The committee, according to an 8-K report QSI filed with the Securities and Exchange Commission, will undertake a new evaluation of the company’s strategy, direction and alternatives, which could include a sale.

“The Transaction Committee may make recommendations to the Board but will not be authorized to enter into or agree to enter into any strategic transaction without the approval of the Board. It is expected that the Transaction Committee will take prompt action to recommend to the Board the hiring of a suitable investment banking firm or management consulting firm to assist the Transaction Committee in its evaluation. The Transaction Committee shall endeavor to complete its preliminary review and to report to the Board its findings by November 30, 2013.”