CDC Software, a provider of enterprise software applications and services, has signed a term sheet to acquire a provider of supply chain management offerings.
The company said, on completion of the transaction, it will be able to offer new technologies including integrated supply chain, demand planning and performance management offerings that are expected to complement its portfolio of back office applications.
In addition, the transaction is also expected to generate new cross-selling opportunities with the company’s CDC Supply Chain, Truition and Activplant suite, where the product lines share similar tier 1 vertical markets that include high tech and automotive customers. The targeted acquisition also offers a supply chain planning suite tailored for the small to medium-size enterprise market that it expects to be sold with Ross Enterprise.
Bruce Cameron, president of CDC Software, said: “Based upon our analysis and projections performed to date, this planned acquisition is expected to be earnings accretive immediately, and we believe it would be an excellent cross-selling fit with our CDC Supply Chain, Ross Enterprise and the newly acquired Activplant and Truition solutions.
“This company’s solutions are used by some of the world’s leading brands in the high tech, industrial and CPG markets, and their international presence in Europe and Asia would also complement the established infrastructure CDC Software already has in those regions.”
The planned acquisition is one of the several moves made in recent months by CDC Software to acquire companies that help fill out its technology portfolio or to aid its expansion into new markets and geographic regions. In the last few months, CDC Software has acquired WKD Solutions, Activplant, Truition and gomembers.
The acquisition is subject to 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.
