CDC Software Signs Term Sheet to Acquire A Provider of SaaS Supply Chain Management Solutions
April 19 2010 - 7:30AM
Business Wire
CDC Software Corporation (NASDAQ: CDCS), a global provider of
enterprise software applications and services, today announced it
has signed a term sheet to acquire a leading provider of on-demand
software as a service (SaaS) supply chain management solutions, the
latest move by CDC Software to expand its growing portfolio of SaaS
solutions and increase recurring revenue significantly over the
next few years.
These new supply chain management products complement the CDC
Supply Chain product line and offer cross-sell opportunities for
targeted CDC Software customers. This venture-funded company has
more than 1,000 customers in 50 countries. The transaction is part
of CDC Software’s acquisition strategy to increase its maintenance
and SaaS recurring revenue to about 70 percent of total revenue
over the next few years.
“We believe that the supply chain management market will
continue to see steady growth and offer us solid revenue
opportunities,” said Bruce Cameron, president of CDC Software. “We
believe this potential acquisition would be an excellent addition
to our already strong SaaS product portfolio and help us further
increase recurring SaaS revenue. Furthermore, we believe that our
forward-thinking goal of reaching 70 percent of revenue coming from
maintenance and SaaS recurring revenue in the next few years will
help position us solidly for long-term growth and further enhance
the value of the company for its shareholders.”
About CDC Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a
provider of enterprise software applications and a full range of
services designed to help organizations deliver a superior customer
experience, while increasing efficiencies and profitability.
Leveraging a service-oriented architecture (SOA), CDC Software
offers multiple delivery options for their solutions including
on-premise, hosted, cloud-based Software as a Service (SaaS) or
blended-hybrid deployment offerings. CDC Software’s solutions
include enterprise resource planning (ERP), manufacturing
operations management, enterprise manufacturing intelligence,
supply chain management (demand management, order management and
warehouse and transportation management), e-Commerce, human capital
management, customer relationship management (CRM), complaint
management and aged care solutions.
CDC Software’s recent acquisitions are part of its “acquire,
integrate, innovate and grow” strategy. Fueling the success of this
strategy is the company’s global scalable business and
technology infrastructure featuring multiple complementary
applications and services, domain expertise in vertical markets,
cost effective product engineering centers in India and China, a
highly collaborative and fast product development process utilizing
Agile methodologies, and a worldwide network of direct sales and
channel operations. This strategy has helped CDC Software deliver
innovative and industry-specific solutions to more than 6,000
customers worldwide within the manufacturing, distribution,
transportation, retail, government, real estate, financial
services, health care, and not-for-profit industries. 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, 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
expectations for completing this acquisition, if at all, and the
terms and timing thereof, our expectations regarding the potential
benefits of acquiring this business, including potential synergies,
our beliefs regarding our strategies to grow our SaaS solutions and
expand recurring revenue, our beliefs about the competitive and
market position of our products and this business, our beliefs
regarding both our and this company’s technology and products, the
integration thereof and the expected potential benefits to
customers, our beliefs about possible increases in revenues from
this acquisition, our beliefs regarding future growth
opportunities, strategies and potential increases in shareholder
value, our expectations regarding our ability to attain future
expansion and success with this businesses’ customers and in the
supply chain management market segment, our beliefs about the
growth potential for the supply chain management market, our
beliefs regarding cross-selling opportunities, our beliefs
regarding projected growth and opportunity in this market and the
reasons therefore, our beliefs, regarding our current and future
competitive market position, our beliefs regarding the timing and
availability for any products developed, our beliefs regarding our
and this company’s products, 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 supply chain management market,
the ability of CDC Software and these products to address the
business requirements of the market, demand for and market
acceptance of this businesses’ technology, as well as: (a) the
ability to realize strategic objectives by taking advantage of
market opportunities; (b) the ability to make changes in business
strategy, development plans and product offerings to respond to the
needs of current, new and potential customers, suppliers and
strategic partners; (c) the effects of restructurings and
rationalization of operations in our companies; (d) the ability to
address technological changes and developments including the
development and enhancement of products; (e) the ability to develop
and market successful products and services; (f) the entry of new
competitors and their technological advances; (g) the need to
develop, integrate and deploy enterprise software applications to
meet customers’ requirements; and (h) the possibility of
development or deployment difficulties or delays; If any such risks
or uncertainties materialize or if any of the assumptions proves
incorrect, our results could differ materially from the results
expressed or implied by the forward-looking statements we make. CDC
Software does not endorse, approve, or certify any information
contained in any third-party materials cited or referenced herein,
nor does it guarantee the accuracy, completeness, efficacy, or
timeliness of such information. 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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