Sagility buys Chirok for up to $32Mn, Q2 revenue up 22.5%
- Sagility agreed on Oct. 21 to buy Chirok Health for up to $32.35 million.
- The cash deal includes $20 million upfront and up to $12.35 million tied to milestones.
- Chirok reported turnover of about $9.0 million in 2025.
- Sagility’s Q2 FY27 revenue rose 22.5% to ₹20,321 million ($212.6Mn).
BENGALURU, INDIA — Sagility has bought Chirok Health, a U.S. clinical documentation and medical coding firm, for up to $32.35 million to grow its provider business.
The deal was signed a day before the healthcare operations company reported 22.5% revenue growth for the September quarter, taking quarterly revenue to $212.6 million.
$20 million upfront
Its subsidiary Sagility (US) Holdings Inc. signed a definitive agreement for 100% of Chirok Health on Oct. 21. Sagility listed the purchase of Chirok Health in its second-quarter results release on Oct. 22.
The cash deal comprises an upfront payment of $20.0 million at closing, subject to customary adjustments, and up to $12.35 million tied to performance milestones, a separate Oct. 21 filing shows.
Tennessee-headquartered Chirok provides clinical documentation integrity (CDI), medical coding, revenue cycle management, and audit and quality assurance services, supported by its proprietary CHEMP workflow platform.
It reported turnover of about $9.0 million in 2025, $8.2 million in 2024 and $12.7 million in 2023.
Sagility’s investor presentation puts Chirok’s revenue for the 12 months to September 2026 at $13 million, with more than 750 employees.
Filling the mid-revenue cycle
Sagility said Chirok’s mid-revenue cycle solutions complement its front-end and back-end revenue cycle offerings.
“The acquisition of Chirok Health is an important step in Sagility’s strategy to build a comprehensive provider-focused services platform,” said Ramesh Gopalan, managing director and group CEO of Sagility.
“Our clients will continue to receive the specialized expertise and high touch support they value today,” said Kanar Kokoy, founder and CEO of Chirok Health.
The deal follows Sagility’s purchase of CareSeed, which Gopalan said is now integrated into its clinical practice.
Revenue up 22.5%
Revenue rose 22.5% year on year to ₹20,321 million ($212.6Mn), or 12.2% in constant currency. Organic growth was 22.2%.
Adjusted EBITDA rose 23.0% to $56.0 million, a 26.3% margin. Adjusted profit after tax rose 8.1% to $34.0 million.
Provider revenue grew 8.2%, against 24.4% for payer revenue, which still makes up most of the business.
Sagility secured $40.2 million in annual contract value from 31 existing clients and one new logo, and ended the quarter with 51,486 employees.
What it means for providers
For hospitals and physician groups that outsource medical coding or revenue cycle management (RCM), the deal puts CDI and coding alongside the patient access, denials and collections work Sagility already sells.
Chirok clients can ask how account teams and service levels carry over. Buyers comparing vendors can start with the top healthcare outsourcing companies in the United States list.
Related news
- Sunbound buys outsourced RCM firm Richter, raises $24Mn Series A · 20 Oct 2026
- Sagility steers beyond healthcare outsourcing · 11 Sep 2026
- Sagility acquires CareSeed to build end-to-end medicare advantage quality stack · 16 Jun 2026
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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