This transaction launches CDC Software's plans to acquire on demand companies that can be rolled up into one formidable SaaS software solutions provider complementing its on-premise solutions in similar vertical industries, such as NFP. This is the first of other potential SaaS acquisitions that CDC Software believes will enable it to offer customers more deployment options, such as on-premise and on demand solutions that best fit their business requirements. With its global infrastructure and market footprint, CDC Software plans to launch this SaaS offering worldwide through its more than 22 offices and its 1200 resellers and partners around the world.

According to market research, there is an estimated 1.5 million registered NFPs in North America alone. For more than 10 years, this venture capital-financed company has provided software solutions to the NFP space. The company's more than 100 customers, including approximately 1,500 seats, include trade groups, professional societies, medical-based not-for-profit organizations, associations, hospitals, colleges and universities, certification bodies, fundraising groups, individual member-based groups, NFP management companies and donor-based organizations. Its customers can automate constituent communications and development, member services, constituent-to-constituent collaboration, ERP, CRM, financial management, transaction processing and e-commerce all from a single platform.

"This planned acquisition is a milestone for us in terms of its fit with our SaaS strategy, expansion into a new market, the disciplined valuation and its potential to be earnings accretive," said Bruce Cameron, president of CDC Software. "SaaS solutions are appealing for some organizations, especially the NFP market, as a low-cost way for businesses to realize the benefits of licensed software which otherwise might be cost prohibitive for them. We believe the target company has a strong management team that include proven entrepreneurs and is profitable with a solid recurring revenue stream. We also believe that this business will grow strongly in the future as we leverage our global scalable business and technology platform with their SaaS technology.