New Delhi, Oct. 22 -- Sagility Ltd, an Indian tech services provider controlled by private equity firm EQT, is set to acquire US-based Chirok Health LLC for up to $32.35 million (around Rs 305 crore), as it adds clinical-documentation and medical-coding capabilities to its provider business.
Sagility provides technology-enabled services to healthcare payers, providers and pharmacy benefit managers. It operates in the US, India, the Philippines, Jamaica and Colombia. EQT has made handsome returns from its various exits from the company.
The consideration for Sagility's latest acquisition will be paid entirely in cash. It comprises $20 million upfront payment at closing, subject to customary adjustments, and tranches of payments of up to $12.35 million tied to specified performance milestones.
Sagility is buying 100% of Chirok.
The deal was inked by Sagility (US) Holdings Inc., a wholly owned US subsidiary of the Bengaluru-headquartered company, on 21 October, according to exchange filings.
Chirok, headquartered in the US state of Tennessee, provides clinical documentation integrity (CDI), medical coding, revenue cycle management, and audit and quality assurance services. Its work is supported by a proprietary workflow platform called Chemp.
The filing says it was incorporated in 2019, while the press release says it was founded in 2020. Kanar Kokoy is its founder and chief executive.
Chirok's turnover was about $12.7 million in calendar year 2023, $8.2 million in 2024 and $9 million in 2025. That is a drop of roughly 35% in 2024 followed by growth of about 10% in 2025.
On 2025 turnover, the maximum consideration works out to about 3.6 times, and the upfront payment to about 2.2 times. Canaccord Genuity LLC was the exclusive financial advisor to Chirok.
Sagility said the acquisition strengthens its provider-segment capabilities in the middle of the revenue cycle, complementing its existing front-end and back-end offerings. It also cited as reasons for the acquisitions cross selling across both companies' client bases, a bigger risk adjustment offering for risk-bearing providers and health plans, and the addition of Chirok's team of clinical documentation specialists, coders and auditors.
"The acquisition of Chirok Health is an important step in Sagility's strategy to build a comprehensive provider-focussed services platform," said Ramesh Gopalan, managing director and group CEO of Sagility.
Other acquisitions
The deal follows Sagility's June acquisition of Kansas City-based CareSeed LLC, a healthcare analytics firm used by 30 mid-sized US health plans. Sagility LLC, a step-down subsidiary, signed that deal on June 11 for up to $30 million. It comprised an upfront payment of $17.5 million and up to $12.5 million payment contigent on revenue growth synergies. CareSeed's turnover was about $5.1 million in 2025.
In January last year, Sagility bought Arizona-based BroadPath Healthcare Solutions for $58 million in cash, adding over 1,600 employees and more than 30 clients.
Published by HT Digital Content Services with permission from VC Circle.