CDC Software, a provider of enterprise software applications and services, has signed binding term sheets to acquire two additional software as a service (SaaS) enterprise offering businesses as part of its previously announced strategy to expand its offering in the on-demand software market.
The two recent acquisitions are CDC gomembers, a provider of SaaS enterprise services for the not-for-profit and non-governmental organisations market and Truition, an on demand eCommerce platform provider for retailers and brand manufacturers.
The company said that the new acquisitions will be integrated into CDC gomembers product line. Both are privately held and include venture-financed technologies that will complement gomember’ enterprise suite.
According to CDC Software, the first transaction includes association management software with integrated web modules and web collaboration tools that automate processes including membership, events services, communications and financials while the second acquisition provides enterprise resource planning and financial management for state and local governments, as well as donor and member-based NFPs, in North America.
The state and local government offering is expected to allow gomembers enterprise offering to expand into a large market within the NFP space that CDC Software said that it believes is a good fit for SaaS solutions.
Bruce Cameron, president of CDC Software, said: “Based upon our analysis performed to date, these acquisitions are expected to be earnings accretive immediately, fit our strict acquisition criteria and we believe will be excellent additions to the CDC gomembers product line.
“We believe these growth and cost efficiency strategies are effective since we already have announced that we expect to see an estimated 37% growth in quarterly license revenue over the average for the first three quarters, 30 % increase in organic license revenues, and an increase in profitability for the fourth quarter of 2009. Furthermore, we believe that gomembers is one of the market leaders in their space that can become a dominant SaaS player in this underpenetrated market place and these latest acquisitions could serve as a key enabler for this strategy.”