NextGen Healthcare (NASDAQ:NXGN) shares closed with more than a 5% gain today following a Reuters report that NextGen is exploring options that include a sale of the company.
According to the report, which cited people familiar with the matter, NextGen has hired investment bank Morgan Stanley to advise it on its discussions with potential buyers, however, there is no certainty that NextGen will ultimately come to an agreement to sell the company.
The company's shares declined by 9% since the beginning of the year, significantly underperforming the Nasdaq Composite Index, which had seen a substantial 32% surge. The decline is attributed to certain clients reducing their spending on information technology, while the company also dealt with the consequences of a federal investigation. Last month, the company settled claims by U.S. prosecutors by agreeing to pay $31 million for misrepresenting the capabilities of its software and incentivizing users through kickbacks to recommend its products.