CDC Software, a provider of enterprise software applications and services, has signed a term sheet to acquire a provider of on-demand software as a service (SaaS) supply chain management offerings, to expand its portfolio of SaaS offerings and increase recurring revenue over the next few years.
CDC software said that the new supply chain management products complement its supply chain product line and offers cross-sell opportunities for targeted CDC Software customers. This venture-funded company has more than 1,000 customers in 50 countries.
The transaction is part of CDC Software’s acquisition strategy to increase its maintenance and SaaS recurring revenue to about 70% of total revenue over the next few years.
Bruce Cameron, president of CDC Software, said: “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.
“Furthermore, we believe that our forward-thinking goal of reaching 70% of revenue coming from maintenance and SaaS recurring revenue in the next few years will help position us solidly for long-term growth and further enhance the value of the company for its shareholders.”
