Monday, enterprise software applications and services provider CDC Software Corp. (CDCS) said it has signed a binding term sheet to acquire a venture capital-backed provider of business intelligence solutions for manufacturing for an undisclosed amount in cash. The acquisition is expected to close in the fourth quarter of 2009.
Bruce Cameron, president of CDC Software said, "This planned acquisition is expected to be earning accretive immediately and we believe it will help us expand our already significant penetration of CDC Software solutions in the food and beverage and CPG markets, as well as help CDC Supply Chain solutions penetrate further in the Tier 1 automotive industry."
Hong Kong-based CDC Software intends to incorporate its X-alert supply chain event management tool, a new product acquired from its purchase of Categoric in September 2009, with the manufacturing intelligence solution of the targeted company.
CDC Software expects the acquisition to generate new cross-selling opportunities for CDC Supply Chain in the Tier 1 automotive market, as well as expand its manufacturing solutions' footprint in the food and beverage and consumer packaged goods markets. The target company's software is installed at more than 200 plants in the automotive, food and beverage, forestry products and CPG companies.
This acquisition announcement marks the latest of several strategic initiatives undertaken by CDC Software. Last quarter, CDC Software completed the acquisition of WKD Solutions Ltd., a provider of supply chain event management solutions marketed under the brand Categoric. Also, an agreement to acquire up to 51% of Hejia Software, an ERP software provider based in Beijing, was executed during the prior quarter.
CDCS is trading at $9.06, down $0.11 or 1.20%, on Nasdaq.
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