(Source: Business Wire)
CDC Software Corporation (NASDAQ: CDCS), a global provider of enterprise
software applications and services, today announced it has signed a
binding term sheet to acquire a provider of software as a service (SaaS)
supply chain solutions for small and medium-size enterprises.
This marks CDC Software's second agreement for the acquisition of a SaaS
company this month, and is part of a "roll up" strategy of acquiring
SaaS companies that complement its on-premise solutions. This latest
possible acquisition would also enable CDC Software to operate in the
business-to-consumer market with an end-to-end SaaS solution that would
help customers enhance their online brand presence, as well as
potentially increase their online sales worldwide.
This targeted company has a long and successful track record in
delivering SaaS supply chain solutions to more than 100 customers in
Tier 1, 2, and 3 markets that complement CDC Software's vertical
industries including financial services, manufacturing, retail and
not-for-profit. Its open platform and geographic coverage aligns
synergistically with CDC Software's technology and global infrastructure.
"This planned acquisition is expected to be earnings accretive and
continues our strategy to acquire on-demand companies that can be rolled
up into a single SaaS software solutions provider," said Bruce Cameron,
president of CDC Software. "This deal would also launch our entry into
the B2C market and we believe it would open up potential opportunities
for our CDC Supply Chain and Front Office solutions as an extension to
this powerful and innovative online platform."
CDC Software expects to integrate the target's front-end customer
service capabilities with its CDC Supply Chain back office fulfillment
solutions to offer an end-to-end online supply chain solution to
customers globally. In addition, CDC MarketFirst, a marketing automation
and lead generation solution, and CDC Respond complaint and feedback
management applications, can help improve promotions and marketing, as
well as customer satisfaction for customers of this online platform.
The acquisition is subject to several customary closing conditions,
including the execution of definitive documentation related to the
acquisition, the receipt of all requisite approvals and consents, and
the satisfactory completion of due diligence by CDC Software.
