CDC expands SaaS arms for SMEs

SHANGHAI & ATLANTA: CDC Software Corporation, a provider of enterprise software applications and services, 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. The acquisition is expected to close in the fourth quarter of 2009.