One Point One Solutions (NSE: ONEPOINT) enters Latin American BPO market with $33m Netcom acquisition

One Point One Solutions Limited (NSE: ONEPOINT) has announced that its wholly owned UAE-based subsidiary, One Point One MENA Holdings Limited, has signed a definitive agreement to acquire 100% equity in Netcom Business Contact Center S.A. (Costa Rica) and its Colombian subsidiary Netcom BCC Colombia S.A.S. in a transaction valued at USD 33.37 million. The move marks the company’s formal entry into Latin America’s IT-enabled services (ITES) and business process outsourcing (BPO) market, strengthening its global delivery footprint.

The acquisition gives One Point One Solutions Limited full ownership of a profitable, asset-light platform serving banking, telecom, and public sector clients in Costa Rica, Colombia, and Panama. This is the company’s first international acquisition of this scale, signalling a broader ambition to scale its omnichannel and digital signature support services beyond India.

What makes this a high-leverage entry into the Latin American BPO and digital signature market?

At the core of the transaction is a play for scale, capability enhancement, and market diversification. Netcom’s operations are embedded across three geographies and offer a defensible value proposition in regulated customer experience services—particularly in digital signature enablement, which is gaining traction in financial services and government workflows. This niche capability complements One Point One Solutions Limited’s existing offerings in the Indian market, and may allow the company to leapfrog into higher-margin segments.

Crucially, the deal is structured to reduce downside risk. Of the total USD 33.37 million consideration, USD 25.41 million is upfront, while USD 8.25 million is tied to an earn-out, dependent on Netcom achieving target financial metrics post-closing. This approach not only aligns incentives between the buyer and seller but signals a measured capital allocation strategy. Additional transaction costs are pegged at approximately USD 1 million.

With Netcom generating USD 25.35 million in revenue in FY24, the acquisition represents a roughly 1.3x trailing revenue multiple. That could be seen as a disciplined entry price if cross-sell synergies or improved margins materialize through integration.

How does Netcom’s operational footprint complement One Point One’s offshore expansion goals?

The timing of the acquisition is consistent with One Point One Solutions Limited’s long-term strategy to expand its offshore delivery capabilities beyond India, where talent supply, rupee pressures, and demand cycles may pose volatility. Netcom operates in Costa Rica, Colombia, and Panama, all of which are favored BPO destinations due to nearshore proximity to North America, Spanish-English bilingual talent, and competitive operating costs.

The entity services clients in banking, telecommunications, insurance, and government—a client mix that offers annuity-like stability. Its specialized position in regulated sector support, particularly digital signature workflows, sets it apart from generic contact center vendors. This vertical focus could give One Point One Solutions Limited a stronger platform to deepen enterprise relationships in regulated industries across the Americas.

Geopolitically, the shift to Latin America also reflects an India-based firm diversifying its country risk while staying asset-light. The acquired entity is reportedly operating long-term blue-chip contracts, which One Point One Solutions Limited can now consolidate into its global account strategy.

Why is the deal structure a signal of capital discipline and performance accountability?

Rather than opting for an all-cash, all-upfront deal, One Point One Solutions Limited has chosen to stage a large portion of the payment—USD 8.25 million—as performance-linked earn-out. This protects the buyer if growth underperforms while giving the sellers upside if they deliver. The structure reflects growing maturity in Indian mid-cap cross-border M&A, which has historically been plagued by integration failures or overly optimistic valuations.

The legal closing of the deal is scheduled on or before March 31, 2026, subject to customary closing conditions. No regulatory approvals are required, allowing the transaction to proceed without jurisdictional delays.

Importantly, the acquisition does not involve any related-party transactions. None of the promoters, promoter group, or affiliates of One Point One Solutions Limited have any prior interest in the acquired entities, affirming the transaction’s arms-length nature.

What execution and integration risks could affect long-term success?

Despite the strategic fit, One Point One Solutions Limited will face operational challenges in integrating across multiple legal, cultural, and regulatory environments. While the management narrative highlights strong fundamentals, integration of leadership, client accounts, compliance, and operational processes across three countries remains a non-trivial task.

The bilingual delivery model—while advantageous for U.S. clients—requires investments in quality, compliance, and service delivery consistency. Moreover, earnings growth tied to the earn-out may pressure legacy Netcom leadership to prioritize short-term EBITDA over long-term transformation unless oversight is carefully designed.

There is also the question of whether One Point One Solutions Limited will pursue further expansion across Latin America or consolidate before scaling further. Its MENA Holdings subsidiary is positioned as the vehicle for such international expansion, but regional governance and talent retention in high-demand BPO markets could influence how quickly the benefits of the acquisition are realized.

How are markets likely to respond to One Point One’s first major international acquisition?

Although not a large-cap stock, One Point One Solutions Limited (NSE: ONEPOINT) has cultivated a niche reputation in digital-led customer experience transformation. Investors may view this move positively as a calculated growth bet rather than a speculative foreign foray.

The company has not disclosed how the acquisition will be funded—whether via internal accruals, debt, or equity issuance—which could affect short-term sentiment. However, the lack of equity dilution and structured earn-out may cushion concerns around leverage or capital strain.

Institutional interest in mid-cap digital CX and BPO firms has increased in India post-COVID, as hybrid work models and regulated customer interfaces gain priority. One Point One Solutions Limited’s entry into the high-growth Latin American market may give it a more global valuation lens, provided integration milestones are met and growth accelerates.

What are the key takeaways for investors tracking One Point One Solutions’ expansion strategy?

• One Point One Solutions Limited is acquiring 100% equity in Netcom’s Costa Rica and Colombia entities in a USD 33.37 million all-cash deal.
• The acquisition gives the company an operational presence in Costa Rica, Colombia, and Panama across BPO and digital signature services.
• Netcom’s FY24 revenue stood at USD 25.35 million, implying a disciplined revenue multiple with upside through earn-out incentives.
• Approximately USD 8.25 million of the total consideration is structured as a performance-linked earn-out.
• The deal does not involve any related parties and requires no regulatory approval, enabling fast-track closing by March 2026.
• Strategic benefits include access to Spanish-English bilingual talent, blue-chip contracts, and expansion into regulated customer support.
• Execution risks include multi-jurisdictional integration, culture alignment, and post-closing EBITDA delivery tied to earn-out conditions.
• Investor response will likely depend on funding clarity, integration cadence, and early revenue synergy realization.