CDC Software Corporation (NASDAQ: CDCS), a global provider of
enterprise software applications and services, today announced it
has completed a definitive agreement to acquire Truition Inc., a
leading On Demand e-Commerce platform provider for retailers and
brand manufacturers. This represents a move that not only opens up
the business to-consumer market (B2C) for CDC Software solutions,
but helps to position CDC Software at the forefront in the
enterprise market with its ability to offer an end-to-end supply
chain execution solution – from raw materials to the end
consumer.
The closing of the Truition acquisition is expected to occur
within the next two weeks and is subject to normal and customary
closing conditions. This acquisition represents the first of the
two previously announced software-as-a-service (SaaS) companies it
plans to acquire as part of its roll-up strategy to acquire SaaS
companies that complement its on-premise solutions. CDC Software’s
SaaS roll-up strategy focuses on key verticals that include retail,
financial services, consumer electronics, apparel, consumer
packaged goods (CPG), non-profit, travel/leisure/loyalty and
sports/entertainment.
With these planned acquisitions, CDC Software enters a market
space that is showing projected strong growth. According to
Gartner’s May 2009, “Market Trends: SaaS report for 2008-2013,”
Gartner is projecting the worldwide SaaS market, currently $6
billion in 2008, will show consistent growth through 2013 when it
is expected to total more than $14 billion for the enterprise
application market.
Founded in 1998, venture capital-backed Truition has delivered
SaaS e-commerce solutions to some of the leading global brands that
include Sirius XM Satellite Radio, Dell Financial Services,
Fujitsu, Philips, Major League Baseball, Wolford, Genco, American
Airlines, National Football League (NFL), National Basketball
Association (NBA), Sears, Starwood United Airlines and National
Hockey League (NHL), to name a few. Based in Toronto, Canada,
Truition serves more than 150 customers in 10 countries. Its
e-commerce platform includes unique functionality such as both
traditional “fixed price” and online auction software, full
front-end and back-end capabilities such as inventory and order
management, community shops, multilanguage/currency, and an
industry-leading “time to install”. Truition’s products complement
CDC Software’s comprehensive list of vertical industries.
“We believe this acquisition will be earnings accretive
immediately and holds a compelling valuation,” said Bruce Cameron,
president of CDC Software. “Truition helps us gain a strong foot
hold in the SaaS market, and we believe it opens up the B2C market
for our solutions. Truition now enables CDC Software to have a
hybrid architecture to offer customers the choice of an on-premise
solution or an on–demand offering, depending on what best fits
their specific business needs. We also believe we are the only
enterprise vendor that can now offer an end-to-end supply chain
execution solution that addresses each touch point in the supply
chain - from the supplier of the raw materials to the end consumer.
From a revenue perspective, we believe there are numerous
cross-sell opportunities with our CDC Supply Chain and Front Office
solutions, especially with our installed base customers operating
in the financial services and retail markets. Truition solutions
can enhance our customers’ online brand presence, as well as
potentially help to increase their online sales worldwide.
“Moreover, Truition’s open platform and geographic coverage
aligns synergistically with CDC Software’s technology and global
infrastructure. CDC Software’s business and technology platform
features an infrastructure of multiple complementary applications
and services, domain expertise in vertical markets, cost effective
product engineering centers in India and China and a worldwide
network of direct sales and channel operations. We believe our
global platform is a key reason why we have successfully integrated
acquisitions that have resulted in a deeper and broader product
portfolio, expanded geographic reach, and increased vertical
expertise,” said Cameron.
Bill Wignall, president and CEO of Truition, stated, “CDC
Software offers great synergy with Truition with their extensive
and proven supply chain execution suite, their direct presence
throughout Europe and their extensive global sales and marketing
reach, especially in China. This will provide our customers with
the platform to reach out to many millions of potential consumers
including the fastest growing economy in the world. Our customers
will benefit immensely from accelerated product development via
increased R&D investment, and we’ll now be able to deliver them
a broader portfolio of complementary solutions. We are proud of the
fact that CDC Software selected Truition as an anchor acquisition
in the SaaS space and we look forward to growing our combined
presence with further acquisitions which will deliver additional
value to our customers.”
This pending acquisition marks the latest of previously
announced acquisition plans undertaken by CDC Software. Last
quarter, CDC Software completed the acquisition of WKD Solutions
Ltd., a leading provider of supply chain event management solutions
marketed under the brand Categoric. This month, CDC Software
completed the acquisition of Activplant, an enterprise
manufacturing intelligence solution provider, that helps solidify
CDC Factory’s leadership in the packaged manufacturing operations
management (MOM) market. Also this month, CDC Software announced
its plans to acquire a SaaS solutions provider in the non-profit
market.
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),
Activplant, enterprise manufacturing intelligence (EMI), 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), CDC 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, and outsourced
R&D and application development, 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
completion of the acquisition of this company, including the timing
thereof, our beliefs regarding the earnings-accretive nature of the
acquisition and the potential effects and expected benefits
thereof, including the potential effects on our competitive
position in the enterprise software and B2C markets, our beliefs
regarding the accounting treatment and earnings accretive nature of
this acquisition, the benefits of the acquisition’s products to
customers, our beliefs regarding our ability to integrate and
leverage the products and solutions to be acquired through this
proposed acquisition with our existing products and platform and
the expected benefits thereof, our beliefs regarding the possible
benefits of this acquisition for our cross-selling opportunities,
market expansion, product offerings, and sales volumes, our
expectations regarding the resumption and continuation of an
acquisition business strategy and our continuation of a SaaS
roll-up strategy, our expectations regarding our possible market
share, uniqueness of our product offerings and 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 belief regarding the existence and potential
success of synergies between this target company and CDC Software,
our beliefs regarding our global scalable business and technology
platform 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.
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