CDC Software, provider of enterprise software applications and services, said that it has signed a binding term sheet to acquire business intelligence software provider for manufacturing in an all cash transaction, which the company believes will help expand its market share in food and beverage, consumer packaged goods (CPG) and automotive markets.
Upon completion of the transaction, the company expects 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.
CDC Software said that it 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 target’s manufacturing intelligence offering.
The announcement marks the latest of several strategic initiatives undertaken by CDC Software. Last quarter, CDC Software has completed the acquisition of WKD Solutions, a provider of supply chain event management software marketed under the brand Categoric, and signed an agreement to acquire up to 51% of Hejia Software, an ERP software provider based in Beijing.
Bruce Cameron, president of CDC Software, said: CDC Software’s acquisition strategy is a key part of the company’s plan for growth and we believe our strategy is enabled by our global scalable business and technology platform that features an infrastructure of multiple complementary applications and services, domain expertise in vertical markets, cost effective product engineering centers in India and China and a worldwide network of direct sales and channel operations.
However, the acquisition is subject to several 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. The acquisition is expected to close in the fourth quarter of 2009.
