Sagility Limited — M&A Activity 2025

Jan 29, 2025

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Date: January 29, 2025

To,

The Manager Listing Department National Stock Exchange (NSE) Exchange Plaza, 5th Floor Plot No. C/1, G-Block Bandra-Kurla Complex Bandra (E), Mumbai - 400 051 Symbol: SAGILITY

The Manager Listing Department Bombay Stock Exchange (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001 Scrip Code:544282

Dear Sir/Ma’am,

Subject: General Update of Acquisition Rationale

In continuation to the press release dated January 29, 2025, please find enclosed the copy Acquisition Rationale.

You are requested to take note of the same.

Thanking You,

For Sagility India Limited

SATISHKUMAR Digitally signed by SATISHKUMAR SAKHARAYAPATTANA SAKHARAYAPATTANA SEETHARAMAIAH SEETHARAMAIAH Date: 2025.01.29 22:16:01 +05'30' Satishkumar Sakharayapattana Seetharamaiah Company Secretary & Compliance Officer Membership No: A16008

Encl: a/a

Sagility India Limited

(Formerly Sagility India Private Limited)

Registered Office - No. 23 & 24, AMR Tech Park, Building 2A, First Floor Hongasandara Village, Off Hosur Road, Bommanahalli, Bengaluru – 560068, Karnataka, India Corporate Identity Number: U72900KA2021PLC150054

Tel. No.: 080-71251500, Website: www.SagilityHealth.com

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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:

1. Increased presence in Top 10 payers: The acquisition of Broadpath will add another Top 10 US payer to our list of clients as well as increase our footprint with two other existing Top 10 payer clients. Post-acquisition, Sagility will serve six of the Top 10 payers in the U.S., solidifying our leadership in the market.

2. Diversified Client Base: This acquisition gives Sagility access to over 30 mid-market clients and presents a valuable opportunity to cross sell our broader service offerings to these clients. These clients include payers, third-party administrators, pharmacy benefit managers, and healthcare providers. The new roster of 30+ clients further diversifies Sagility’s revenue base.

3. Expanded Capabilities: Broadpath’s strengths in member acquisition and enrolment services in Medicare & Medicaid will complement and expand Sagility's existing service offerings, further enhancing our ability to meet diverse client needs across the entire Payer value chain. Sagility’s strong multi-shore delivery model would deliver significant value to BroadPath clients.

4. Financial Synergies: The acquisition of Broadpath will be accretive to earnings per share (EPS) from day one. Acquiring Broadpath, with revenues of ~US$ 70M, at <1x EV/Revenue will drive shareholder value, further driven by attractive cross sell synergies and economies of scale.

5. Strengthen Employee Engagement and Operational Efficiencies with Bhive platform: Broadpath has been a pioneer in the work-from-home model, leveraging its proprietary Bhive platform even before the COVID-19 pandemic. Bhive enables rapid scaling of operations while maintaining a highly engaged workforce, improving productivity. It optimizes employee engagement and operational metrics in remote environments, ensuring a superior experience for both employees and clients. By integrating Bhive with Sagility’s GenAI solutions, we aim to enhance operational efficiencies.

6. Talent Acquisition: Broadpath brings strong operational expertise in a work-from-home delivery model with a skilled workforce of over 1,600 employees. The market facing team has deep relationships across health plans which will further strengthen our sales, marketing and account management teams.

Sagility India Limited

(Formerly Sagility India Private Limited)

Registered Office - No. 23 & 24, AMR Tech Park, Building 2A, First Floor Hongasandara Village, Off Hosur Road, Bommanahalli, Bengaluru – 560068, Karnataka, India Corporate Identity Number: U72900KA2021PLC150054

Tel. No.: 080-71251500, Website: www.SagilityHealth.com