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CDC Software to Acquire SaaS Registration Solutions Provider

By Rajani Baburajan
TMCnet Contributor

CDC Software, a hybrid enterprise software provider of on-premise and cloud deployments, signed a term sheet to acquire a company that provides software-as-a-service (SaaS) event and membership management solutions.

The proposed transaction is part of CDC Software's (News - Alert) acquisition strategy to increase its maintenance and SaaS recurring revenue to about 70 percent of total revenue over the next few years, a release from the company said.

According to company officials, this targeted acquisition would add key technology to CDC Software's portfolio of enterprise applications, particularly its CDC gomembers product line that includes solutions for Not-For-Profit (NFPs) and state and local government sectors.

Additionally, this acquisition would also provide additional functionality for, and generate new cross-selling opportunities with, CDC Software's other products such as Pivotal CRM, CDC eCommerce and other front office applications, company officials added.

“We believe this targeted acquisition would add key functionality to our gomembers solutions that could help enhance our customers' marketing, event signups and membership renewals,” said Paul Plaia, president of CDC Government and NFP business sector of CDC Software, in a statement.

Plaia also said this potential acquisition would be an excellent addition to CDC’s already strong SaaS (News - Alert) product portfolio. “This targeted company fits within our disciplined acquisition criteria and is expected to be earnings accretive.”

The acquisition is subject to several customary closing conditions, the company said. They include the completion of due diligence, the execution of definitive documentation related to the acquisition, and the receipt of all requisite approvals.

Earlier this year, CDC Software signed a reciprocal original equipment manufacturer (OEM) agreement with Servicepower Business Solutions, a provider of outsourced service and field management solutions, to sell their solutions.

Through this OEM partnership, CDC announced it would add field management functionality to its eCommerce product offering. As part of the agreement, Servicepower will sell CDC Software's marketing automation and lead generation solution, to its customers.