ITCube Solutions is Acquired By One Point One Solutions For Rs 84 crore By CIOTechOutlook Team

ITCube Solutions is Acquired By One Point One Solutions For Rs 84 crore

CIOTechOutlook Team | Friday, 23 February 2024, 02:42 IST

One Point One Solutions, a business process management service provider based in Navi Mumbai, made its first overseas acquisition by purchasing ITCube Solutions, a smaller IT-enabled services firm, for Rs 84 crore.

The board of One Point One Solutions has given approval for the acquisition of ITCUBE Solutions Private Limited (ITCube) for a total consideration of Rs. 84,00,04,632 (Rupees Eighty Four Crore Four Thousand Six Hundred Thirty Two Only), which will be paid in one or more tranches. This information was shared by the company in a regulatory filing, as per ET.

“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 firm, which is listed on the NSE, plans to finalize the transaction by April 1st, 2026. According to Chhabra, this deal will provide One Point One Solutions with an opportunity to enter two new verticals - medical services in the US and manufacturing commerce, where ITCube has a significant client base in a B2B construction exchange.

According to Chhabra, One Point One Solutions could reduce their headcount and improve margins by around 40% through automation and artificial intelligence (AI) following their acquisition. This could result in a 10% increase in profitability.

“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 of Rs 42.11 crore for Q3FY24, an 18.5% increase from the previous quarter. Net profit also grew 2.8 times to Rs 5.97 crore.