CDC Supply Chain Software Vendor Acquires TradeBeam

After following business software news for a while, we’ve noticed a predominant trend. Business solutions providers have their ‘heads in the clouds’. Meaning, software companies are focusing their attention on cloud-computing, on-demand solutions. Recent acquisitions in the ERP industry show that companies are realizing the value of expanding their cloud-based solutions.

CDC Software Corporation recently acquired TradeBeam for an undisclosed amount. CDC is an enterprise solution and supply chain management software provider that has both on-premise and on-demand solutions. TradeBeam is a San Mateo based on-demand global trade management and supply chain visibility software vendor. The acquisition serves to expand CDC’s supply chain software portfolio of cloud-based solutions by leveraging TradeBeam’s software-as-a-service (SaaS) technology.

CDC plans to integrate TradeBeam’s SaaS supply chain visibility software into its own CDC supply chain product line. The merging of technologies will help CDC users improve supply chain visibility and automate their trade management processes. TradeBeam and CDC have several common customers who will benefit from the acquisition and CDC’s product portfolio expansion.

TradeBeam offers cross-sell opportunities for CDC users who source and sell globally. TradeBeam customers will enjoy access to the CDC Ross ERP and CDC Factory’s manufacturing software solutions, CDC Activ Plant’s enterprise manufacturing operations management solutions, and CDC eCommerce platform. TradeBeam offers CDC users SaaS solutions for import and export compliance, global sourcing, forecasts and inventory visibility, global trade finance, and supply chain management.

The supply chain software vendor will also benefit from the acquisition by using TradeBeam to become a relevant solutions provider in the global trade industry. Global trade management is a growing field due to economic globalization, increasing trade volumes worldwide, and new markets in developing countries that offer low cost material and labor resources. Recent ERP research found that global trade practices accompanied by automation will result in increased profitability by 10-40 percent.

“This is a very synergistic combination on many fronts,” said TradeBeam’s CEO, Edward Flaherty. “Our solutions are a great fit for CDC Software’s growing installed base, especially with its CDC Supply Chain and CDC eCommerce products and their market presence in complementary vertical industries such as automotive, medical device and retail industries. We expect that TradeBeam and its customers will benefit immensely from the global breadth of CDC Sotware’s technology and business infrastructure, especially their extensive operations in China, and the company’s broad portfolio of complementary solutions.”

“We believe the global trade management market will continue to see strong growth and offer us numerous revenue opportunities since companies are selling more and more of their products globally and increasingly moving their manufacturing and sourcing offshore,” said CEO of CDC Software, Bruce Cameron. “Like many of our past acquisitions, TradeBeam fits into CDC Software’s disciplined acquisition criteria and is expected to be earnings accretive immediately.”

The acquisition highlights two important trends in the ERP world. ERP vendors, like supply chain software company CDC, are turning towards on-demand solutions as well as focusing their attention on expanding into the global trade market. These two ERP trends are exemplified by the CDC-TradeBeam acquisition.

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