CDC Software Corporation (NASDAQ: CDCS), a global provider of
enterprise software applications and services, today announced that
it has executed a term sheet to acquire up to a 51 percent stake in
Hong Kong-based VITOVA Ltd., a leading enterprise content
management (ECM) provider in China.
As part of the transaction, CDC Software also has a right of
first refusal to acquire UNIS VITOVA, the company’s Beijing-based
affiliate and a provider of records archive management software.
The acquisition of this interest in VITOVA is subject to several
customary closing conditions, including the execution of definitive
documentation related to the transaction, the receipt of all
requisite approvals and consents, and the satisfactory completion
of due diligence by CDC Software.
VITOVA is one of the leading ECM providers in China. Some of the
company’s technology was originally developed at two renowned
universities, the Chinese University of Hong Kong and the Tsinghua
University in Beijing. VITOVA’s ECM Solution helps improve the
document handling cycle by capturing, indexing, searching and
archiving under strict security control. Documents can be in paper,
e-mail, fax or Microsoft Word/Excel format. VITOVA's ECM solution
is compliant with the China Archival Law, which helps archivists to
keep proper records, and its products are also certified by the
State Archives Administration of China and China Archives Academy
to deliver high performance.
Recently, Microsoft Hong Kong presented VITOVA with the “Best
ISV of the Year 2009” award recognizing the partner’s success in
delivering exemplary solutions for customers during the year. This
was the third time VITOVA has received this award.
VITOVA helps its more than 500 customers manage paper documents,
files, Internet resources, email, fax and photocopies. Its
customers operate in a wide range of industries including
manufacturing, public sector, financial services, non-profit
organizations, higher education and healthcare, among others, and
include some leading brands in China and globally such as DBS
Vickers, Hong Kong Jockey Club, Kerry Logistics, United Asia
Financial, the Treasury, Commerce Department Marine Department and
the Department of Health of the Hong Kong SAR Government.
In the event the acquisition is completed, VITOVA will be the
latest addition to CDC Software’s Franchise Partner Program. Formed
in 2006, CDC Software’s Franchise Partner Program helps CDC
Software establish strategic relationships with partners in
selected geographies, with a focus on emerging markets, through
majority control or minority investments in these partners. CDC
Software currently has seven other franchise partners located in
India, China, South America, Spain and Mexico.
The acquisition of VITOVA is part of CDC Software’s strategic
plans to expand its geographic footprint and increase sales by
accessing rapidly growing economies. As part of that strategy, CDC
Software has increased its investment focus in China.
In the event the acquisition is completed, CDC Software intends
to resell VITOVA solutions under the brand CDC DMS, and believes
that there are significant cross selling opportunities for CDC
Software to its 6,000 worldwide customer base. Additionally, VITOVA
intends to integrate its DMS software to CDC Software’s Ross ERP,
CDC Supply Chain, Pivotal CRM and CDC Platinum HRM solutions.
Additionally, as part of its software-as-a-service (SaaS) strategy,
CDC Software plans to roll out its VITOVA DMS solution utilizing a
SaaS model. Late last year, CDC Software launched its SaaS rollup
strategy through the acquisition of SaaS software companies
gomembers and Truition.
“We are very pleased with our planned investment in VITOVA, and
hope to help expand the market share of its award-winning ECM
solutions in the global arena,” said Bruce Cameron, president of
CDC Software. “This planned acquisition is expected to help us
accelerate our organic growth rate through the cross selling
chemistry between VITOVA and CDC Software. As we have previously
stated, this type of potential investment and partnership in China
are part of our long-term plans to significantly increase revenue
in China and eventually position this region as our second largest
revenue generator.”
“We are excited about CDC Software’s investment in VITOVA,” said
Aldous Ng, CEO of VITOVA. “We believe CDC Software’s Franchise
Partner Program investments and acquisitions have performed well
under support from CDC Software’s global infrastructure. We expect
to leverage this compelling infrastructure to not only build our
ECM product market share via the worldwide distribution network of
CDC Software, but also to further expand CDC Software’s products
into China, a potentially lucrative market.”
About VITOVA
Ltd.
Based in Hong Kong, VITOVA is a leading ISV in Content
Management industry. VITOVA develops software tools to connect
people to relevant information. VITOVA's software helps to reduce
the time needed for searching information while increasing the
relevance of the information found. The product family has won many
awards including Microsoft Best ISV of the Year of 2009, 2007 &
2005 of Hong Kong, 2006 Microsoft Partner Program Award, Winning
Customer Award, Regional Winner of Greater China, 2006 Microsoft
Partner Program Award, Data Management Solutions Technology
Innovation Finalist, 2005 Microsoft Partner Program Award,
ISV/Software Solutions Technology Innovation Finalist, 2003 and
2002 Hong Kong Awards for Industry and Hong Kong IT Excellence
Awards 2001. Customers of VITOVA include large corporations like
the Hong Kong Jockey Club and Hong Kong Trade Development Council,
most Government departments, most tertiary institutions, and many
SME.
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 xAlerts (real-time
supply chain event management), CDC Power (discrete ERP), CDC
eCommerce, CDC NFP/NGO, 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
expectations for completing this acquisition of VITOVA Ltd and the
terms thereof, if at all, our expectations regarding the potential
benefits of acquiring VITOVA, our expectations regarding our
continued expansion in the China region and other countries, our
beliefs about the competitive and market position of VITOVA, the
China market in general, our penetration thereof, and growth
opportunities in that area, our beliefs regarding VITOVA’s
technology and products, our beliefs regarding the China enterprise
software market, our expectations regarding our ability to attain
future expansion and success with customers VITOVA through
cross-selling and otherwise, our beliefs regarding the timing and
availability for any products developed, our beliefs regarding
VITOVA’s products, our beliefs regarding VITOVA’s and other
Franchise Partners’ financial and operational performance
post-investment, our beliefs regarding VITOVA’s reselling efforts
for our products, 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 software market in China, the ability of CDC
Software and VITOVA products to address the business requirements
of the market, demand for and market acceptance of VITOVA
technology, as well as: (a) the ability to realize strategic
objectives by taking advantage of market opportunities in China;
(b) the ability to make changes in business strategy, development
plans and product offerings to respond to the needs of current, new
and potential customers, suppliers and strategic partners; (c) the
effects of restructurings and rationalization of operations in our
companies; (d) the ability to address technological changes and
developments including the development and enhancement of products;
(e) the ability to develop and market successful products and
services; (f) the entry of new competitors and their technological
advances; (g) the need to develop, integrate and deploy enterprise
software applications to meet customer's requirements; and (h) the
possibility of development or deployment difficulties or delays; If
any such risks or uncertainties materialize or if any of the
assumptions proves incorrect, our results could differ materially
from the results expressed or implied by the forward-looking
statements we make. Also, the results and benefits experienced by
customers and users set forth in this press release may differ from
those of other users and customers. 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.
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