CDC Software Corporation (NASDAQ: CDCS), a global provider of
enterprise software applications and services, today announced it
has completed a definitive agreement to acquire gomembers, Inc., a
leading provider of software as a service (SaaS) and on-premise
solutions for the Not-For-Profit (NFP) and Non-Governmental
Organizations (NGO) market. The acquisition is expected to close
early this week and remains subject to standard closing
conditions.
Chicago-based gomembers is the second of the two previously
announced SaaS companies CDC Software plans to acquire as part of
its SaaS roll-up strategy to complement its on-premise solutions in
key verticals that include NFP/NGO, retail, financial services,
consumer electronics, apparel, consumer packaged goods (CPG),
travel/leisure/loyalty and sports/entertainment. As part of that
strategy, CDC Software reached a definitive agreement last week
with eCommerce provider Truition. The acquisitions of gomembers,
and Truition, are expected to advance the company’s goal to offer
customers multiple deployment options, such as on demand,
on-premise and hybrid, a blend of both on-premise and on demand
solutions, that best fit their business requirements.
Founded in 1996, by Paul Plaia, gomembers delivers enterprise
solutions to some of the most well-respected NFP’s in North
America, including: The Armed Forces Communications and Electronics
Association International, Water Research Foundation, University of
Iowa and The United States Conference of Catholic Bishops, to name
a few. The company has more than 150 customers, utilizing more than
1,500 seats, that include trade groups, professional societies,
medical-based not-for-profit organizations, associations,
hospitals, colleges and universities, certification bodies,
fundraising groups, individual member-based groups, NFP management
companies and donor-based organizations. Its customers can automate
constituent communications and development, member services,
constituent-to-constituent collaboration, ERP, CRM, financial
management, transaction processing and e-commerce all from a single
platform.
CDC Software will be targeting what is believed to be a largely
underpenetrated and fragmented market space that is estimated to
include approximately 1.5 million registered NFPs in North America
alone, according to market research. The company also believes that
this sector is ripe for consolidation.
“We are excited to be in a position to finalize our acquisition
of gomembers, which we anticipate will serve as the launch pad for
other acquisitions in the NFP/NGO market,” said Bruce Cameron,
president of CDC Software. “SaaS solutions are appealing for a
variety of organizations, especially the NFP/NGO market, as a
low-cost way for businesses to realize the benefits of licensed
software which otherwise might be cost prohibitive for them. “We
believe we can become a dominant SaaS player in this
underpenetrated space and this acquisition serves as an integral
part of the strategy. From a financial perspective, the company is
profitable with a strong management team and solid recurring
revenue as they have successfully transitioned from a traditional
license model to a managed service model. In addition, we
anticipate numerous cross-sell opportunities with Pivotal CRM and
our other Front Office solutions. As we have stated previously,
this acquisition is expected to be earnings accretive immediately
and fits within our strict valuation criteria.”
CDC Software plans to launch this SaaS offering leveraging its
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, 24/7 customer support, and
a worldwide network of direct sales and more than 1,200 resellers.
This global platform is a key reason why the company believes it
has successfully integrated acquisitions that have resulted in a
deeper and broader product portfolio, expanded geographic reach,
and increased vertical expertise.
“I am extremely excited to be part of such an exciting and
growing global software company that shares our same culture and
technology vision,” said Paul Plaia, who will continue as president
of gomembers. “I believe our customers will benefit immensely from
CDC Software’s compelling global technology and business platform,
enabling us to deliver products faster to the market, as well as
offer a portfolio of complementary solutions. The two companies
offer great synergies that can provide customers with a variety of
solutions and services to fit their distinct business requirements.
gomembers is proud to be selected by CDC Software as their anchor
acquisition in the NFP/NGO market. As one of the current market
leaders, we believe being a part of CDC Software will provide us a
formidable leadership role in this market space.”
This pending acquisition marks the latest of several previously
announced acquisition plans undertaken by CDC Software. Last
quarter, CDC Software completed the acquisition of WKD Solutions
Ltd., a leading provider of supply chain event management solutions
marketed under the brand Categoric. This month, CDC Software
completed the acquisition of Activplant, an enterprise
manufacturing intelligence solution provider, that we believe will
help solidify CDC Factory’s leadership in the packaged
manufacturing operations management (MOM) market. Also this month,
CDC Software announced a definitive agreement to acquire Truition,
a leading on demand e-Commerce platform provider for retailers and
brand manufacturers.
About CDC
Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a
provider of enterprise software applications and services designed
to help organizations deliver a superior customer experience, while
increasing efficiencies and profitability. CDC Software provides
customers with maximum flexibility in their solutions through
multiple deployment options which best fit their business needs.
Leveraging a service-oriented architecture (SOA), CDC Software
offers multiple delivery options for their solutions such as
on-premise, cloud-based or hybrid (blending of the two options)
deployment offerings. CDC Software's product suite includes: CDC
Factory (manufacturing operations management), Activplant
(enterprise manufacturing intelligence), CDC Ross ERP (enterprise
resource planning), CDC Supply Chain (supply chain management ,
warehouse management and order management),CDC X-alert (real-time
supply chain event management), CDC Power (discrete ERP), CDC
Pivotal CRM and Saratoga CRM (customer relationship management),
CDC Respond (customer complaint and feedback management), c360 CRM
add-on products, industry solutions and development tools for the
Microsoft Dynamics CRM platform, CDC HRM (human resources) and
business analytics solutions.
These industry-specific solutions are used by more than 6,000
customers worldwide within the manufacturing, financial services,
health care, home building, real estate, wholesale and retail
distribution industries. The company completes its offerings with a
full continuum of services that span the life cycle of technology
and software applications, including implementation, project
consulting, technical support and IT consulting. For more
information, please visit www.cdcsoftware.com.
About CDC Corporation
The CDC family of companies includes CDC Software (NASDAQ: CDCS)
focused on enterprise software applications and services, CDC
Global Services focused on IT consulting services, and outsourced
R&D and application development, CDC Games focused on online
games, and China.com China.com, Inc. (HKGEM:8006) focused on
portals for the greater China markets. For more information about
CDC Corporation (NASDAQ: CHINA), please visit
www.cdccorporation.net.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, including statements relating to our beliefs
about CDC Software, the acquisition target, and our expected
completion of the acquisition of this company, including the timing
thereof, our beliefs regarding the earnings-accretive nature of the
acquisition and the potential effects and expected benefits
thereof, including the potential effects on our competitive
position in the SaaS, Not-for Profit Non-Governmental Organizations
markets, our beliefs regarding the NFP market itself, including the
size, geography and preferences of customers therein, our beliefs
regarding market potential and cross-selling opportunities, our
beliefs regarding the potential benefits of the acquisition’s
products to customers, our beliefs and third party beliefs
regarding the SaaS market and its market conditions, our beliefs
regarding our ability to integrate and leverage the products and
solutions to be acquired through this proposed acquisition with our
existing products and platform and the expected benefits thereof,
our beliefs regarding the possible benefits of this acquisition for
our cross-selling opportunities, market expansion, product
offerings, and sales volumes, our expectations regarding the
resumption and continuation of an acquisition business strategy and
our continuation of a SaaS roll-up strategy, our expectations
regarding our possible market share, uniqueness of our product
offerings and ability to attain future expansion and success with
customers of CDC Software, our beliefs regarding our ability to
integrate this acquisition into CDC Software, our belief regarding
the existence and potential success of synergies between this
target company and CDC Software, our beliefs regarding our global
scalable business and technology platform and other statements that
are not historical fact, the achievement of which involve risks,
uncertainties or assumptions. These statements are based on
management's current expectations and are subject to risks and
uncertainties and changes in circumstances. There are important
factors that could cause actual results to differ materially from
those anticipated in the forward looking statements including,
among others: the conditions of the enterprise market, the
completion of the acquisition of this acquisition on favorable
terms, if at all, and the ability of CDC Software and/or this
acquisition products to address the business requirements of the
market,. Further information on risks or other factors that could
cause results to differ is detailed in our filings or submissions
with the United States Securities and Exchange Commission, and
those of our ultimate parent company, CDC Corporation, located at
www.sec.gov. All forward-looking statements included in this press
release are based upon information available to management as of
the date of the press release, and you are cautioned not to place
undue reliance on any forward looking statements which speak only
as of the date of this press release. The company assumes no
obligation to update or alter the forward looking statements
whether as a result of new information, future events or otherwise.
Historical results are not indicative of future performance.
Cdc Corp. (MM) (NASDAQ:CHINA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cdc Corp. (MM) (NASDAQ:CHINA)
Historical Stock Chart
From Jul 2023 to Jul 2024