CDC Software said that it has delivered a proposal to acquire all the outstanding shares of Chordiant, a provider of customer experience software and services, in a cash and stock transaction valued at $105.1m, or $3.46 per share.
The company said that it currently holds 392,762 shares of Chordiant, or approximately 1.3% of Chordiant’s 30.4 million outstanding shares .
The proposed transaction provides two options for the payment of consideration. The first option in consideration comprises of 40% cash and the remaining 60% in a combination of shares of both CDC Software and CDC Corp. The second option comprises of 50% cash and 50% in CDC Software shares.
CDC said that the combination between the two companies is expected to create a front office platform in the enterprise market and that both companies are synergistic in a variety of fronts such as their technology, geographic foot print and customers.
In addition, CDC software said that it believes it would provide Chordiant with the platform to expand globally by leveraging its global customer base, product engineering offshore operations in India and China and more than 1,000 partners and resellers worldwide.
The combination is also expected to provide cross-selling opportunities, result in increase in annual revenue with a portion in recurring maintenance and Software-as-a Service (SaaS) revenue and enhance its adjusted EBITDA margin, CDC said.
Peter Yip, CEO of CDC Software, said: “Both companies have several complementary vertical markets, and particularly share many common customers in the financial services market. CDC Software and Chordiant also have minimal geographic overlap, and CDC Software can provide Chordiant with the extensive global infrastructure it needs to expand, especially in Asia.”
