CDC Set to Acquire Transportation Management Solutions

CDC Software signs a term sheet to acquire a provider of cloud-based transportation management solutions. CDC believes this targeted acquisition will allow it to offer new transportation and logistics technology that is expected to complement its portfolio of enterprise applications, particularly the recently acquired CDC TradeBeam global trade management solution.

In addition to CDC TradeBeam, this acquisition is expected to provide additional functionality and generate new cross-selling opportunities with CDC's other products that include: CDC Supply Chain, CDC Ross ERP, and CDC eBizNET, a supply chain execution solution.

The transaction is part of CDC's acquisition strategy to increase its maintenance and SaaS recurring revenue to about 70 percent of total revenue over the next few years.

"This targeted acquisition's award-winning logistics solution is a great cross-selling fit with our hybrid solutions that include supply chain, ERP and global trade management functionality," said Bruce Cameron, president of CDC Software. "The solution holds strong synergies, in particular, with our CDC TradeBeam solutions. That is why we believe this potential acquisition would be an excellent addition to our already strong SaaS product portfolio and help us further increase recurring SaaS revenue. Like our other transactions, this targeted company fits within our disciplined acquisition criteria and is expected to be earnings accretive immediately."

The acquisition is subject to several customary closing conditions, including the execution of definitive documentation related to the acquisition, and the receipt of all requisite approvals.