CDC Software Increases its Credit Facility with Wells Fargo Capital Finance to $50 million from $30 million
November 01 2010 - 8:00AM
Business Wire
CDC Software Corporation (NASDAQ: CDCS), a hybrid enterprise
software provider of on-premise and cloud deployments, today
announced it has secured an additional $20 million in new
financing, increasing the credit limit available under its existing
credit facility with Wells Fargo Capital Finance, part of Wells
Fargo & Company (NYSE:WFC), to $50 million.
CDC Software plans to use the five year senior secured revolving
credit facility for, among other things, strategic growth
initiatives such as mergers and acquisitions, and general corporate
purposes. As of June 30, 2010, CDC Software had drawn approximately
$15 million from the credit facility.
“We are delighted to increase our credit facility with Wells
Fargo Capital Finance and appreciate their support of our expansion
plans that include growth in emerging markets such as China, India,
Russia and Latin America, increased cross-sell marketing and our
continued investment in research and development,” said Stephen
Dexter, CFO, CDC Software. “With our strong financial results,
which includes cash flow from operations, and with this increased
credit facility, we believe that CDC Software is well positioned to
execute further on its strategic growth plans that include organic
growth, geographic expansion, increased cross-sell opportunities,
as well as acquisitions in the software as a service, or SaaS,
space.”
“We‘ve been very pleased with our relationship with CDC Software
since completing the original credit facility earlier this year,”
said Kurt Marsden, executive vice president and head of the
Technology Finance division of Wells Fargo Capital Finance. “With
the upsizing of the credit facility to a total of $50 million, we
are delighted to continue our relationship as CDC Software pursues
its growth plans by leveraging its recurring revenue base and
executing on its hybrid strategy.”
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 10,000 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 Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain
asset-based lending, accounts receivable and purchase order finance
services of Wells Fargo & Company and its subsidiaries, and
provides traditional asset-based lending, specialized senior
secured financing, accounts receivable financing and purchase order
financing to companies across the United States and Canada.
Dedicated teams within Wells Fargo Capital Finance provide
financing solutions for companies in specific industries such as
software publishing, technology, retail, commercial finance,
staffing, government contracting, timeshare development and others.
For more information, visit wellsfargocapitalfinance.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. These forward-looking statements include
statements regarding our expectations regarding our planned uses of
funds under the Wells Fargo credit facility, our beliefs regarding
our position for executing on future plans and strategies,
including those for strategic, organic, cross-sell and
acquisition–related growth, and other statements that are not
historical fact, the achievement of which involve risks,
uncertainties and assumptions. 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. 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 the following: (a) the ability to realize
strategic objectives by taking advantage of market opportunities in
targeted geographic markets; (b) the ability to make strategic
acquisitions and other investments,(c) changing circumstances that
may affect for CDC Software Corporation and its affiliates; and (d)
risks relating to economic conditions and other matters beyond our
control. 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 Commission 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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