CDC Software Corporation (NASDAQ: CDCS), a hybrid enterprise
software provider of on-premise and cloud deployments, today
announced that it has acquired San Mateo, Calif.-based TradeBeam, a
leading provider of on-demand software as a service (SaaS) supply
chain visibility and global trade management solutions. CDC
Software and TradeBeam share several common customers, and
TradeBeam represents CDC Software’s largest SaaS acquisition to
date. This acquisition also represents CDC Software’s latest move
in expanding its growing portfolio of cloud-based solutions and
increasing recurring SaaS revenue significantly during the next few
years.
With this acquisition, CDC Software plans to integrate
TradeBeam’s SaaS applications into its CDC Supply Chain product
line, which is expected to help customers improve supply chain
visibility and automate their import and export global trade
management and compliance processes. TradeBeam also offers
additional cross-sell opportunities for CDC Software’s enterprise
solution customers, who source and sell globally. In turn,
Tradebeam customers are expected to benefit from CDC Ross ERP, CDC
Factory’s manufacturing operations management solutions, CDC
ActivPlant’s enterprise manufacturing intelligence solutions, and
CDC eCommerce’s multi-tenant eCommerce platform for retailers and
brand manufacturers. TradeBeam provides SaaS solutions for import
and export compliance, global sourcing, collaborative forecast and
inventory visibility, supply chain event management and global
trade finance. TradeBeam holds several patents in its technology
and has more than 1,000 customers with users in more than 100
countries worldwide.
CDC Software believes that global trade management is a growing
market primarily due to economic globalization, increasing global
trade volumes, including new revenue markets in developing
countries that offer low cost material and labor resources.
According to the Global Trade Management Worldwide Outlook report
in 2008 by ARC Advisory Group, the global trade support market is
expected to grow from more than $600 million in 2009 to more than
$800 million by 2012, a compound annual growth rate of 10 percent.
Also, TradeBeam and Stanford University recently completed a joint
study on the benefits of global trade automation, “How Enterprises
and their Trading Partners Gain from Global Trade Automation: A New
Process Model for the China-U.S. Trade Lane.” The research found
that in many cases, companies could gain dramatically by
implementing global trade best practices and accompanying
automation, resulting in increased profitability by 10-40 percent,
among other improvements.
“This is a very synergistic combination on many fronts,’’ said
Edward Flaherty, CEO of TradeBeam. “Our solutions are a great
fit for CDC Software’s growing installed base, especially with its
CDC Supply Chain and CDC eCommerce products and their market
presence in complementary vertical industries such as automotive,
medical device and retail industries. We expect that TradeBeam and
its customers will benefit immensely from the global breadth of CDC
Software’s technology and business infrastructure, especially their
extensive operations in China, and the company’s broad portfolio of
complementary solutions. In fact, parts of the Chinese government
are already users of TradeBeam’s import and export compliance
solutions.”
“We believe the global trade management market will
continue to see strong growth and offer us numerous revenue
opportunities since companies are selling more and more of their
products globally and increasingly moving their manufacturing and
sourcing offshore,” said Bruce Cameron, president of CDC Software.
“Like many of our past acquisitions, TradeBeam fits into CDC
Software’s disciplined acquisition criteria and is expected to be
earnings accretive immediately. We also believe our margin will
expand further as we take advantage of more cross selling and cost
savings opportunities when TradeBeam is fully integrated into CDC
Software’s global business and technology platform.”
Cameron added, “Tradebeam and CDC Software share many
complementary vertical markets, including financial services,
retail, medical and high-tech and logistics, which we expect will
present strong cross-sell opportunities. We are especially pleased
to see signs of a rebound in the global automotive market,
especially in China. Notably, we also share common customers such
as General Motors, Johnson Controls, Inc., Renault and Stryker. We
believe that TradeBeam technology, with its numerous patents, is an
excellent addition to our already strong SaaS product portfolio and
that it will help us further increase our recurring SaaS revenue.
We believe our forward-thinking goal of reaching 70 percent of
revenue coming from maintenance and recurring SaaS 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
stakeholders.”
Revolution Partners, a division of Morgan Keegan & Company,
Inc. acted as financial advisor to TradeBeam, while Morgan, Lewis
& Bockius LLP provided legal counsel to TradeBeam.
About TradeBeam
TradeBeam is a Global Trade Management (GTM) software and
services company providing on demand solutions that streamline
global trading for enterprises and their partners. TradeBeam’s
integrated solution provides import and export compliance and
visibility including inventory management, shipment tracking, and
supply chain event management, as well as global trade finance
solutions such as open account and letter of credit management.
Founded in 1999 and headquartered in the San Francisco Bay Area,
TradeBeam has operations in the United States, Europe, China, and
India. www.tradebeam.com, which is not part of this press
release.
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. Fuelling 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 centres in India and China, a
highly collaborative and fast product development process using
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 hybrid enterprise software 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 strategies
for expansion, our plans with respect to integration of TradeBeam,
our expectations regarding the potential benefits of this
acquisition to our customers and TradeBeam’s customers, our beliefs
regarding potential synergies and cross-selling opportunities, our
beliefs about the competitive and market position of our business
and Tradebeam’s business, our beliefs regarding technology and
products and the integration thereof, our expectations regarding
our ability to attain future expansion and success with customers
and in the global trade management market segment, our beliefs
regarding the earnings accretive nature of this transaction and the
potential effects on our margins, our beliefs regarding growth of
the global trade management market, any projections or estimates
regarding the potential benefit of implementing global best trade
practices, our beliefs regarding the timing and availability for
any products developed, 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 global trade management
markets, the ability of CDC Software and these products to address
the business requirements of the market, demand for and market
acceptance of these 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 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.
Cdc Software Corp. ADS, Each Representing One Class A Ordinary Share (MM) (NASDAQ:CDCS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cdc Software Corp. ADS, Each Representing One Class A Ordinary Share (MM) (NASDAQ:CDCS)
Historical Stock Chart
From Jul 2023 to Jul 2024