CDC Software Corporation (NASDAQ: CDCS), a hybrid enterprise
software provider of on-premise and cloud deployments, today
announced it acquired Information Development Consultants, Inc.
(iDC), a cloud-based software as a service (SaaS) enterprise
resource planning (ERP) software solution provider for the state
and local government and not-for-profit (NFP) markets. This marks
the latest acquisition in CDC Software’s SaaS roll-up strategy to
significantly expand the market footprint of its CDC gomembers
cloud-based enterprise software solution.
The iDC solution will be integrated into the CDC gomembers
enterprise product line and will help expand its solution into the
state and local government markets. Last February, CDC Software
acquired computility, a SaaS association management software
solution featuring integrated web modules and web collaboration
tools for NFP organizations.
Privately held iDC is headquartered in Chicago (www.4idc.com)
and has developed the scalable SaaS government fund accounting and
ERP solution 4gov® for state and local governments, as well as
PlusFund® for NFPs. The company supports customers that range in
size from small communities to national governments and also
includes state government agencies, cities, counties, airports,
park districts and special agencies in the U.S., and NFPs,
donor-based organizations and religious groups. iDC believes it was
one of the first to offer SaaS solutions for the state and local
government markets and the only company to offer a true web-based
SaaS government fund accounting solution.
According to INPUT, a worldwide market intelligence research and
consulting firm, the government market is considered one of the
largest and fastest growing market segments of the IT market. INPUT
forecasts the state and local government market for vendor-supplied
IT systems to increase from $49.6 billion in 2009 to $60.1 billion
by 2014, with a compound annual growth rate of 3.9 percent. The
software products segment of this market is projected to grow from
$6.9 billion in 2009 to $9.1 billion by 2014, the fastest growing
segment in this state and local government category with a five
year compound annual growth rate of 6.7 percent.
CDC Software acquired gomembers at the end of 2009 and offers
on-demand SaaS and on-premise enterprise solutions for NFP and
Quasi-Governmental Organizations. The CDC gomembers platform is at
the center of CDC Software’s strategy to acquire complimentary SaaS
solutions targeting the NFP market. CDC Software also offers
comprehensive on-premise and SaaS solutions including eCommerce,
ERP, manufacturing operations management, supply chain execution,
global trade management and customer relationship management
(CRM).
We are extremely excited to complete the acquisition of iDC,”
said Paul Plaia III, president of CDC gomembers. “It will help us
enter into the state and local government markets and further
expand our presence in the NFP market. It’s important for
governments to prove to their constituents that they are committed
to balancing government spending with revenue. We believe that
having a robust SaaS financial management system like the iDC
Solutions give the government executives and elected officials the
tools they need to plan and manage the public money. We also
believe that the state and local government markets offer strong
revenue opportunities since e-government has grown steadily over
the years. We plan to continue evaluating more companies like these
as we build scale and expand globally in the key NFP and Government
vertical markets.
“Most importantly, we also look forward to working with iDC
customers and offering them our high quality solutions and services
and access to our broad global business and technology
infrastructure. We also welcome Carolyne Turner and Daryl
McPherson, founders and senior executives at iDC to CDC Software.
They will continue to offer their extensive expertise in this
market and management acumen to iDC customers and to the CDC
gomembers business.”
Plaia added, “The iDC acquisition not only fits strategically,
but it also meets our disciplined acquisition criteria and is
expected to be earnings accretive immediately. This acquisition is
part of our SaaS roll-up strategy to expand CDC SaaS solutions. As
we have stated previously, our corporate goal is to grow our
recurring SaaS revenue stream, along with maintenance revenue from
our on-premise customers, to about 70 percent of our total
revenue over next few years. Therefore, we are planning
on making more investments to further expand our footprint in the
growing SaaS space.”
In addition to gomembers and computility, CDC Software’s other
recent SaaS acquisitions include Truition, an eCommerce solutions
provider, and TradeBeam, a provider of SaaS global trade management
solutions; and investments in eBizNET Solutions, a provider of SaaS
supply chain execution solutions, and Marketbright, a SaaS
marketing automation solutions provider.
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), global trade 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 8,000
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.
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 and beliefs about the benefits of acquiring iDC,
including potential synergies, our beliefs about the competitive
and market position of iDC and our business, our beliefs regarding
technology and products, and the integration thereof, our
expectations regarding our ability to attain future expansion and
success with iDC’s customers and in the NFP/NGO market segment, our
beliefs regarding the earnings accretive nature of this
transaction, our beliefs regarding our current and future
competitive market position, our beliefs regarding the timing and
availability for any products developed, our beliefs regarding
iDC’s and our products, our beliefs and those of others about the
state and local government market for vendor-supplied IT systems
and the software segment thereof, our beliefs regarding the benefit
of iDC’s solutions to customers, our plans and expectations
regarding any future acquisitions and growth, 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 SaaS and NFP/NGO markets, the
ability of CDC Software and its products to address the business
requirements of the market, demand for and market acceptance of CDC
Software and iDC’s 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.
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