The shares of one of the Healthcare stocks specializing in providing healthcare-focused technology-enabled solutions hit a 5 percent upper circuit, following the acquisition of BroadPath Healthcare Solutions valued at approximately Rs. 502 Crore.
Price action
With a market capitalization of 21,281 Crores on Thursday, the shares of Sagility India Ltd hit a 5 percent upper circuit after making a high of Rs 47.73 compared to its previous closing price of Rs 45.46.
What Happened
Sagility India Ltd’s subsidiary Sagility LLC, signed a definitive agreement with Broadpath Global, LLC, Broadpath, LLC, AND Bhive Holdings, LLC, to acquire a 100 percent stake in BroadPath Healthcare Solutions worth ~Rs.502 crores, which belongs to the USA Healthcare tech-enabled services industry.
The acquisition of BroadPath helps diversify its client base and expand its services. It adds over 30 new clients and strengthens Sagility’s position among the top ten US health plans. The acquisition also allows Sagility to offer more services to mid-market clients, including payers, third-party administrators, pharmacy benefit managers, and providers.
Acquisition Rationale
Acquiring Broadpath will strengthen Sagility’s position in both the large and mid-sized US healthcare payer segments.
The key reasons why this acquisition will be a transformative move for Sagility
Stronger Presence with Top 10 US Payers: The acquisition adds another major U.S. payer client and strengthens Sagility’s relationship with two existing ones, bringing Sagility to six of the top 10 payers.
Diversified Client Base: Sagility gains access to over 30 new mid-market clients, including payers and healthcare providers, allowing the company to offer more services and diversify its revenue.
Expanded Capabilities: BroadPath’s expertise in Medicare and Medicaid services will complement Sagility’s current offerings, helping meet more client needs across the payer industry.
Financial Benefits: The acquisition will immediately boost Sagility’s earnings and create value through cross-selling and economies of scale.
Strengthen Employee Engagement and Efficiency: BroadPath’s Bhive platform improves employee engagement and operational efficiency, especially in a work-from-home setup, which will be integrated with Sagility’s solutions for even better results.
Talent Acquisition: BroadPath brings a skilled workforce of over 1,600 employees with deep industry connections, strengthening Sagility’s sales, marketing, and account management teams.
About the Company
Sagility India Limited is a healthcare business process management (BPM) company that provides technology-enabled services to clients in the United States. Sagility India’s services include claims management, payment integrity, and revenue cycle management.
Financials
The company’s revenue rose by 19.3 percent from Rs 1,123.17 crore to Rs 1,340.39 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 34.96 crore to Rs 117.34 crore during the same period.
Written by Sridhar J
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