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 (NYSE:MS) 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.