Cloudpoint to buy CX One for US$4.02M to broaden IT capabilities
What's the deal? Malaysian IT firm Cloudpoint Technology is acquiring CX One Sdn Bhd for US$4.02M to expand into unified communications, contact centre solutions, and customer engagement platforms. The deal, announced via a Bursa Malaysia filing, covers 100% of CX One's equity from four individual vendors.
Cloudpoint currently operates in enterprise networking, cybersecurity, digital applications, and cloud services. It expects the acquisition to create cross-selling opportunities across its existing customer base.
CX One posted a profit after tax (PAT) of US$432.8K for FY2025 on revenue of US$4.57M — more than doubling from US$209.9K on US$2.57M the prior year. The firm also holds a majority stake in KBOFM 1Tech Sdn Bhd, which provides specialised telecom applications including satellite tracking and radar station operations.
Why now? CX One's strong growth trajectory likely made it an attractive target. Its revenue nearly doubled year-on-year, driven by new project wins and expanded contracts — suggesting momentum Cloudpoint wants to capture before valuations rise further.
What could go wrong? The deal includes performance-linked safeguards. CX One must hit a PAT guarantee of US$562K for FY2026 and US$645.7K for FY2028. Cloudpoint is holding back US$633.7K and US$717.4K respectively — releasing funds only if targets are met. If CX One falls short or posts a loss, Cloudpoint reduces payouts accordingly or retains the balance entirely.
Cloudpoint plans to fund half the acquisition — US$2.01M — by reallocating IPO proceeds. The remaining US$2.01M, covering the retention sums, will come from internal funds and bank borrowings.
Cloudpoint's own stock is down nearly 20% year-to-date, closing at 54 sen on the day of the announcement with a market capitalisation of US$68.6M. Investors may question whether this is the right time to deploy capital on acquisitions.
The signal: The deal reflects a broader push among mid-cap IT companies in Southeast Asia to consolidate and build end-to-end service portfolios. As enterprises demand integrated solutions — from cybersecurity to customer engagement — smaller IT firms are acquiring their way into adjacent verticals rather than building from scratch.
Read more: theedgemalaysia.com
