CDC Software Corporation (NASDAQ: CDCS), a global provider of
enterprise software applications and services, today announced it
has signed a binding term sheet to acquire a provider of software
as a service (SaaS) solutions for the Not-For-Profit (NFP) market,
a move that launches its SaaS acquisition strategy and increases
its market expansion in this new vertical.
This transaction launches CDC Software’s plans to acquire on
demand companies that can be rolled up into one formidable SaaS
software solutions provider complementing its on-premise solutions
in similar vertical industries, such as NFP. This is the first of
other potential SaaS acquisitions that CDC Software believes will
enable it to offer customers more deployment options, such as
on-premise and on demand solutions that best fit their business
requirements. With its global infrastructure and market footprint,
CDC Software plans to launch this SaaS offering worldwide through
its more than 22 offices and its 1200 resellers and partners around
the world.
According to market research, there is an estimated 1.5 million
registered NFPs in North America alone. For more than 10 years,
this venture capital-financed company has provided software
solutions to the NFP space. The company’s more than 100 customers,
including approximately 1,500 seats, include trade groups,
professional societies, medical-based not-for-profit organizations,
associations, hospitals, colleges and universities, certification
bodies, fundraising groups, individual member-based groups, NFP
management companies and donor-based organizations. Its customers
can automate constituent communications and development, member
services, constituent-to-constituent collaboration, ERP, CRM,
financial management, transaction processing and e-commerce all
from a single platform.
“This planned acquisition is a milestone for us in terms of its
fit with our SaaS strategy, expansion into a new market, the
disciplined valuation and its potential to be earnings accretive,”
said Bruce Cameron, president of CDC Software. “SaaS solutions are
appealing for some organizations, especially the NFP market, as a
low-cost way for businesses to realize the benefits of licensed
software which otherwise might be cost prohibitive for them. We
believe the target company has a strong management team that
include proven entrepreneurs and is profitable with a solid
recurring revenue stream. We also believe that this business will
grow strongly in the future as we leverage our global scalable
business and technology platform with their SaaS technology. We
feel this combination will help position us as a leading SaaS
solutions provider in the NFP space.”
In the event this transaction is completed, the acquisition also
is expected to generate new cross-selling opportunities for CDC
MarketFirst and CDC Respond which will extend this company’s
product functionality into the areas of marketing automation, lead
management and complaint and feedback management. CDC MarketFirst,
for instance, can potentially help this company execute broad email
campaigns promoting upcoming events and membership recruitment
activities in addition to lead generation, while CDC Respond could
help improve communications and feedback from member
organizations
The acquisition is subject to several customary closing
conditions, including the execution of definitive documentation
related to the acquisition, the receipt of all requisite approvals
and consents, and the satisfactory completion of due diligence by
CDC Software. The acquisition is expected to close in the fourth
quarter of 2009.
About CDC
Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a
provider of enterprise software applications and services designed
to help organizations deliver a superior customer experience while
increasing efficiencies and profitability. CDC Software's product
suite includes: CDC Factory (manufacturing operations management),
CDC Ross ERP (enterprise resource planning), CDC Supply Chain
(supply chain management , warehouse management and order
management),CDC X-alert (real-time supply chain event management),
e-M-POWER (discrete ERP), CDC Pivotal CRM and Saratoga CRM
(customer relationship management), CDC Respond (customer complaint
and feedback management), c360 CRM add-on products, industry
solutions and development tools for the Microsoft Dynamics CRM
platform, CDC HRM (human resources) and business analytics
solutions.
These industry-specific solutions are used by more than 6,000
customers worldwide within the manufacturing, financial services,
health care, home building, real estate, wholesale and retail
distribution industries. The company completes its offerings with a
full continuum of services that span the life cycle of technology
and software applications, including implementation, project
consulting, technical support and IT consulting. For more
information, please visit www.cdcsoftware.com.
About CDC Corporation
The CDC family of companies includes CDC Software (NASDAQ: CDCS)
focused on enterprise software applications and services, CDC
Global Services focused on IT consulting services, outsourced
application development and IT staffing, CDC Games focused on
online games, and China.com China.com, Inc. (HKGEM:8006) focused on
portals for the greater China markets. For more information about
CDC Corporation (NASDAQ: CHINA), please visit
www.cdccorporation.net.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, including statements relating to our beliefs
about CDC Software, the acquisition target and our expected
acquisition of this company, including the earnings-accretive
nature thereof, our beliefs regarding the potential expansion in
the NFP market and the characteristics of the NFP market, our
expectations regarding the completion of this acquisition and the
effects and expected benefits thereof, our beliefs regarding the
benefits of the acquisition target’s products to customers, our
beliefs regarding our ability to integrate and leverage the
products and solutions to be acquired with our current and future
products such as CDC MarketFirst and Respond solutions, our beliefs
regarding potential cross-selling opportunities, our beliefs
regarding the potential future performance of this company
post-acquisition and the effects on our market and competitive
position, our expectations regarding the resumption of an
acquisition business strategy, our expectations regarding our
possible market share and our ability to attain future expansion
and success with customers of CDC Software, our beliefs regarding
our ability to integrate this acquisition into CDC Software, our
beliefs regarding our global scalable business and technology
platform and our beliefs regarding past successful integrations and
other statements that are not historical fact, the achievement of
which involve risks, uncertainties or assumptions. These statements
are based on management's current expectations and are subject to
risks and uncertainties and changes in circumstances. There are
important factors that could cause actual results to differ
materially from those anticipated in the forward looking statements
including, among others: the conditions of the enterprise market,
the completion of the acquisition of this acquisition on favorable
terms, if at all, and the ability of CDC Software and/or this
acquisition products to address the business requirements of the
market. Further information on risks or other factors that could
cause results to differ is detailed in our filings or submissions
with the United States Securities and Exchange Commission, and
those of our ultimate parent company, CDC Corporation, located at
www.sec.gov. All forward-looking statements included in this press
release are based upon information available to management as of
the date of the press release, and you are cautioned not to place
undue reliance on any forward looking statements which speak only
as of the date of this press release. The company assumes no
obligation to update or alter the forward looking statements
whether as a result of new information, future events or otherwise.
Historical results are not indicative of future performance.
Cdc Software Corp. ADS, Each Representing One Class A Ordinary Share (MM) (NASDAQ:CDCS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Cdc Software Corp. ADS, Each Representing One Class A Ordinary Share (MM) (NASDAQ:CDCS)
Historical Stock Chart
From Sep 2023 to Sep 2024