Within two years of acquiring healthcare business process management company Sagility LLC, Baring Private Equity Asia (BPEA) EQT is weighing offloading a minority stake in it, said multiple people aware of the development. Preliminary discussions to hire a banker and launch a formal process have been initiated, they said. BPEA EQT is likely to sell a 25%-30% stake in Sagility LLC, formerly Hinduja Global Solutions Healthcare LLC, at a $1.2-billion valuation, said one of the people cited earlier.
In 2021, BPEA EQT had acquired the healthcare vertical of Hinduja Global Solutions for an enterprise value of ₹7,500 crore ($1 billion), through Baring Asia Private Equity Fund VIII. Hinduja Global is the business process management (BPM) entity of the Hinduja Group. An email sent to a spokesperson of BPEA EQT remained unanswered.
Sagility is targeting $1-billion revenue by 2026. The company posted a revenue of $460 million in FY22.
Colorado-based Sagility, which has more than 25,000 employees across five geographies – India, Philippines, US, Columbia and Jamaica – had recorded a revenue of about $400 million in FY21.
The company plans to open centres in tier-2 cities and small towns and plans to add 3,000 individuals to its employee base globally.
About 45% of Sagility’s workforce is in India. Last year, news agency PTI had said in a report that there could be some acquisitions of companies that have clinical capabilities or healthcare-specific capabilities in the next 12-18 months.
Last month, Sagility had acquired Arizona-based Devlin Consulting, a healthcare technology services company providing payment integrity services.
The healthcare BPM industry provides services such as medical billing, coding, claims processing and handling patient data. The cost-cutting strategies force global healthcare providers to hire BPO service providers for cost-effective services such as medical billing, transcription and claims processing. The global healthcare BPO market is projected to grow to be worth about $755 billion by 2030, up from $300 billion in 2021.
