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NextGen Healthcare to acquire Entrada for $34 million

by Lauren Dubinsky, Senior Reporter | April 12, 2017
Business Affairs Health IT
Portfolio includes mobile app
that integrates with EHR
NextGen Healthcare Information Systems, LLC, a subsidiary of Quality Systems, Inc., announced on Wednesday an agreement to acquire integrated mobile solutions company Entrada, Inc. for $34 million in cash.

“Mobile health solutions — in the palm of the provider — are quickly becoming some of the most valuable real estate in health care,” Rusty Frantz, president and CEO of NextGen Healthcare, said in a statement. “We intend to invest in expanding Entrada’s capabilities, continuing to provide enhancements to their already impressive platform.”

Entrada offers a mobile app that integrates with multiple clinical platforms and all major EHRs. Through the app, clinicians can access patient data, dictate information, and have it sent directly to the EHR and communicate with each other via secure text messaging and clinical data sharing.

"With NextGen Healthcare’s resources, we can accelerate unlocking the productivity potential for caregivers, ultimately helping them gain time to focus on their patients,” noted Bill Brown, CEO of Entrada.

Entrada had revenues of approximately $12 million last year, but lost about $2 million. From February 2010 until July 2014, the company received about $7 million in equity funding from investment firms including Claritas Capital, Clayton Associates, FCA Venture Partners and Pantheon Ventures, according to Crunchbase.

Entrada was founded in 2005 and is currently based in Brentwood, Tennessee. The company was formerly known as VocalEZ until it changed its name in January 2010.

Quality Systems announced that it will provide additional details on the transaction at its upcoming conference call in May. They will also “review results of its fiscal year 2017 fourth quarter and year, ended March 31, 2017.”

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