Sagility India Limited has announced its acquisition of BroadPath, a move set to bolster its position in the US healthcare payer sector. This acquisition is expected to expand Sagility’s client base, enhance service offerings, and drive financial synergies, solidifying its market leadership.
Sagility acquired BroadPath Healthcare Solutions for approximately ₹502 crore, a deal structured as a 100% cash transaction. BroadPath, a US-based healthcare services provider, reported an estimated turnover of $70 million in CY2024.
The acquisition will enable Sagility to serve six of the top 10 healthcare payers in the US. This not only increases the company’s market footprint but also strengthens existing relationships with major industry players.
With this acquisition, Sagility gains access to over 30 mid-market clients, including payers, third-party administrators, pharmacy benefit managers, and healthcare providers. This diversification is expected to offer cross-selling opportunities and broaden Sagility’s revenue streams.
BroadPath’s expertise in Medicare and Medicaid member acquisition and enrolment services will complement Sagility’s existing service portfolio. By integrating BroadPath’s strengths with Sagility’s multi-shore delivery model, the company aims to offer a comprehensive range of solutions across the payer value chain.
The acquisition is anticipated to be immediately accretive to Sagility’s earnings per share (EPS). With BroadPath generating revenues of approximately $70 million and acquired at less than 1x its enterprise value/revenue, Sagility expects to drive shareholder value through economies of scale and attractive cross-sell synergies.
BroadPath’s proprietary Bhive platform, a pioneering remote workforce management solution, has demonstrated success in optimising employee engagement and operational metrics. Sagility plans to integrate Bhive with its GenAI solutions to further enhance workforce productivity and operational efficiency.
With the addition of BroadPath’s 1,600-strong workforce and experienced market-facing team, Sagility aims to strengthen its sales, marketing, and account management capabilities. The acquired talent brings deep industry relationships that will be instrumental in further business growth.
At 9:37 AM on January 30, 2025, Sagility India shares traded at ₹47.73 per share on the NSE
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Published on: Jan 30, 2025, 2:39 PM IST
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