CDC Software Corporation (NASDAQ: CDCS), a hybrid enterprise
software provider of on-premise and cloud deployments, today
announced it plans to make a strategic investment in eBizNET
Solutions, a leading provider of software-as-a-service (SaaS)
supply chain execution solutions. This marks CDC Software’s second
strategic cloud investment announcement in recent weeks that is
expected to further advance its strategy to increase recurring
revenue significantly over the next few years.
In addition to the strategic investment, CDC Software also plans
to develop a strategic relationship with Pittsburgh-based eBizNET
Solutions whereby CDC Software is expected to become a cobranded
reseller of eBizNET solutions globally. As part of strategic
relationship, an eBizNet Solutions affiliate and CDC Software plan
to jointly offer an integrated solution of eBizNet and CDC
Software’s solutions including CDC eCommerce and x-Alerts to
potential customers of both companies.
eBizNET offers an integrated suite of on-demand SaaS Supply
Chain Execution (SCE) solutions including warehouse management,
transportation management, yard management, port and cargo terminal
management, activity based billing and costing, and reverse
logistics. Its customers include Fortune 500 companies located
around the world.
As part of this recent transaction, CDC Software may also lease
its SaaS infrastructure globally to an eBizNET affiliate, and in
turn, CDC Software may utilize eBizNET’s consulting and systems
integration services. In addition, eBizNET may also utilize CDC
Software’s offshore development and support centers.
“We are excited to have one of the world’s leading enterprise
solutions vendors investing in our company,” said Abhay Edlabadkar,
CEO and president of eBizNET. “CDC Software’s planned investment in
us will not only help fuel our growth but also provide us with the
opportunity to leverage their extensive and cost efficient global
offshore development and support infrastructure that can help
deliver compelling economies of scale. We also believe that our
strategic partnership with CDC Software can also allow us to expand
rapidly globally, especially in high growth markets such as China,
Latin America and India. Notably, this partnership can also offer
our customers complementary integrated solutions that we believe
can help enhance the performance and efficiency of their
businesses.”
“We believe this can be a very synergistic partnership that can
help CDC Software advance its hybrid model, and expand its SaaS
product line, while offering our customers more options and
flexibility in their solutions deployment,” said Bruce Cameron,
president of CDC Software. ”Already, CDC Software’s eCommerce
product line shares mutual customers with eBizNet solution which
further illustrates the synergies in this relationship. These new
solutions further strengthen CDC Software’s position as a provider
of hybrid enterprise solutions offering customers on-premise and
cloud deployment options. We also believe that this transaction can
further advance our goal of boosting maintenance and SaaS recurring
revenue to about 70 percent of our total revenue in the next few
years.”
This partnership and investment is expected to help further
expand CDC Software’s rapidly growing cloud-based SaaS product
portfolio and its commitment to operating under a hybrid software
model. Since late last year, CDC Software has acquired three
cloud-based companies and announced an investment and strategic
relationship with Marketbright, a key SaaS marketing automation
solutions provider.”
The strategic investment in eBizNET and the formation of the
strategic relationship are subject to the completion of due
diligence and the negotiation and execution of definitive
documentation.
About eBizNET Solutions
eBizNET Solutions is an affiliate of 7Hills Business Solutions,
a leading provider of SaaS Supply Chain Execution Solutions and has
its presence in North America and Asia Pacific. With a proven
footprint across Retail, 3PL, Automotives, Pharma, Food &
Beverages and High Technology, the company offers an array of
unique solutions as part of its robust and integrated eBizNET –
Supply Chain Suite in a SaaS or On-Demand environment for supply
chain communities, supporting all the trading partners in the
ecosystem. eBizNET is a cloud partner of NetSuite and SPS Commerce.
To learn more about us, please visit www.ebizscm.com.
About CDC Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a
hybrid enterprise software provider of on-premise and cloud
deployments. 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 about our strategies to increase recurring revenue and
any progress related thereto, our beliefs regarding our investment
in eBizNet/7Hills, including the terms and completion thereof, if
at all, our beliefs regarding the formation of our strategic
relationship with EBizNet/7Hills and the expectation of entering
into definitive documentation with respect thereto, our beliefs
regarding the respective obligations and plans of each party in or
related to the strategic relationship as well as the potential
benefits of such a relationship to each participant and their
respective products and customers, our expectations regarding our
cloud-based SaaS product portfolio, our beliefs regarding future
growth, international expansion and potential benefits to
customers, our beliefs regarding possible synergies in our
relationship and potential effects on our market and competitive
position, 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: (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 customer's 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.
Also, the results and benefits experienced by customers and users
set forth in this press release may differ from those of other
users and customers. 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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