One Point One Solutions, a Navi Mumbai-based business process management service provider, marked its overseas foray by announcing its first acquisition of smaller IT-enabled services firm ITCube Solutions for Rs 84 crore.
The company’s board “approved the acquisition of 100% stake in ITCUBE Solutions Private Limited (ITCube) for a consideration Rs. 84,00,04,632 (Rupees Eighty-Four Crore Four Thousand Six Hundred Thirty Two Only) in one or more tranches,” One Point One Solution said in a regulatory filing.
“We have our business only in India at present and the fastest way to grow was through an acquisition. This company has a lot of business in the KPO (Knowledge Process Outsourcing) and BPO (business process outsourcing) business with around 80 per cent coming from it and rest 20 per cent is from IT-enabled services segment,” said Akshay Chhabra, managing director, One Point One Solutions.
The NSE-listed firm expects to complete the transaction by 1 April, 2026.
Chhabra said the deal will also give One Point One Solutions entry into two verticals – the medical services in the US and in the manufacturing commerce space where ITCube has a large client in a B2B construction exchange.
With the acquisition, One Point One Solutions could also reduce the headcount and improve the margins driven by automation and artificial intelligence (AI) of around 40 per cent of the business and thereby get a 10 per cent uptick to profitability, Chhabra said.
“Out of the 600 people, I can reduce a headcount of 150 people by doing automation,” Chhabra said adding that the senior management will be retained entirely.
One Point One Solutions reported a total income grew by 18.5% to Rs 42.11 crore for Q3FY24 and a 2.8 times growth in net profit at Rs 5.97 crore.
Post the acquisition, the company is also looking to make one acquisition and is considering a couple of companies in the Philippines and in the Latin American regions.
Established in 2003, ITCube provides software development, BPO and IT-enabled services serving clients in healthcare, petrochemicals, oil and gas, construction, ecommerce, etc across USA, England, Netherlands, Germany, Kuwait, Oman, UAE, Qatar, India, Singapore & Australia.
ITCube reported a revenue of Rs 53.57 crore, Rs 57.41 crore and 50.96 crore for FY23, FY22 and FY21, respectively on a consolidated EBIDTA of Rs 12.15 crore, 14.83 crore and 14.91 crore, respectively, during the three years.
Source: Economic Times