Veradigm [OTCMKTS:MDRX], a Chicago-based provider of healthcare data and technology solutions, collected initial bids recently for a potential sale, three sources familiar with the situation said.

Financial sponsors are mainly looking at the business, the same sources and two additional sources familiar with the situation said.

Thoma Bravo, which owns NextGen Healthcare, is one of the financial sponsors circling the asset, two of the sources said. Last November, Thoma acquired NextGen, a cloud-based healthcare technology solutions, for USD 1.8bn.

Swiss pharmaceutical giant Roche [SWX:ROG] owned Flatiron Health, a New York-based startup specializing in managing cancer patient data in US clinics, could be a logical partner for Veradigm, some sources added. This week, The Financial Times reported that Roche is working with Citi to explore strategic alternatives, including a partial or full sale, for Flatiron Health. Roche acquired Flatiron Health, previously backed by Alphabet [NASDAQ:GOOG], for USD 1.9bn in 2018. Vista Equity Partners, which owns Greenway Health, may be another logical suitor, two of the sources said.

Interest from potential buyers is stronger for some parts of the Veradigm’s business rather than the whole company, the sources said. However, the seller invited bids for a wholeco sale instead of letting parties cherry-pick assets at this point, some of the sources said.

Some parties could partner up to acquire the company, two of the sources noted.

In late May, Veradigm announced it is exploring strategic alternatives. JPMorgan is its financial advisor, and Sidley Austin is serving as legal counsel to the company. Earlier in the month, Kent Lake Capital filed a 13D reporting a stake of 5%. Kent Lake did not disclose any immediate plans or proposals but stated that it may engage in discussions with the management, board and other parties regarding a range of topics including potential business combinations or disposition.

At the time of the announcement of strategic alternatives, the company reaffirmed fiscal 2024 guidance previously provided in March, which highlighted that Veradigm expected revenues between USD 620m and USD 635m and adjusted EBITDA to be between USD 104m and USD 113m.

Some buyers could have concerns about accounting issues of Veradigm, two of the sources said.

In February, Veradigm, which was formerly called Allscripts, was delisted from Nasdaq due to non-compliance with listing rules as it had not filed its annual report for the year ended 31 December 2022 or its quarterly reports for three quarters in 2023.

Still, some of the sources noted that the USD 985m market cap company trades cheaply at over 2x EV/EBITDA multiple, and it could be an opportunistic acquisition for a financial sponsor to realign the business, improve operational efficiencies and realize cost synergies as well, some of the sources said.

The company’s Executive Chairman Greg Garrison said in a press release that Veradigm’s board is exploring alternatives to drive the company’s “growth strategy and maximize shareholder value.” He noted that Veradigm has “built a unique set of assets in the healthcare industry, including a high-quality data and technology platform that spans providers, payers and life sciences companies.” He said Veradigm has also added healthcare-specific generative AI capabilities to benefit the business.

The company shares ended the day at USD 9.10.

Veradigm did not respond to a request for comment. JPMorgan and Thoma Bravo declined to comment.