CDC Software Agrees to Acquire a Provider of Cloud-Based Transportation Management Solutions
August 03 2010 - 8:00AM
Business Wire
CDC Software Corporation (NASDAQ: CDCS), a hybrid enterprise
software provider of on-premise and cloud deployments, has signed a
term sheet to acquire a provider of cloud-based transportation
management solutions.
In the event that this transaction is completed, CDC Software
believes this targeted acquisition will allow it to offer new
transportation and logistics technology that is expected to
complement CDC Software’s portfolio of enterprise applications,
particularly its recently acquired CDC TradeBeam global trade
management solution. In addition to CDC TradeBeam, this acquisition
is expected to provide additional functionality and generate new
cross-selling opportunities with CDC Software’s other products that
include: CDC Supply Chain, CDC Ross ERP, and CDC eBizNET, a supply
chain execution solution. 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.
“This targeted acquisition’s award-winning logistics solution is
a great cross-selling fit with our hybrid solutions that include
supply chain, ERP and global trade management functionality,” said
Bruce Cameron, president of CDC Software. “The solution holds
strong synergies, in particular, with our CDC TradeBeam solutions.
That is why 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. Like our other
transactions, this targeted company fits within our disciplined
acquisition criteria and is expected to be earnings accretive
immediately.”
The acquisition is subject to several customary closing
conditions, including the execution of definitive documentation
related to the acquisition, and the receipt of all requisite
approvals.
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 resource management, customer relationship
management (CRM), complaint management, non-profit membership
management, government fund accounting 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 completing this acquisition of the company and the
terms thereof, if at all, our expectations regarding the potential
benefits of acquiring company, our expectations regarding our
ability to offer new technology that includes integrated supply
chain, demand planning and performance management solutions, our
beliefs about the competitive and market position of company, our
beliefs regarding company’s technology and products, our
expectations regarding our ability to attain future expansion and
success with customers company through cross-selling and otherwise,
our beliefs regarding the earnings accretive nature of this
transaction, our beliefs regarding our ability to complete the
contemplated acquisition, including negotiating definitive
transaction documents, our beliefs regarding the 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
enterprise software market, the ability of CDC Software and company
products to address the business requirements of the market, demand
for and market acceptance of company 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.
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, including our
Annual Report on Form 20-F for the year ended December 31, 2009,
filed with the SEC on June 1, 2010, 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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