CDC Software Acquires TradeBeam
CDC Software (News – Alert)Corporation, a hybrid enterprise software provider of on-premise and cloud deployments, has acquired San Mateo, Calif.-based TradeBeam. TradeBeam is a provider of on-demand software as a service (SaaS (News – Alert)) supply chain visibility and global trade management solu
United States (May 18, 2010) –
CDC Software and TradeBeam share several common customers, and TradeBeam represents CDC Software’s largest SaaS acquisition to date.
Officials with CDC Software said that the acquisition also represents the company’s latest move in expanding its growing portfolio of cloud-based solutions, a strategy meant to increase recurring SaaS revenue significantly during the next few years.
Company officials said that with this acquisition, CDC Software plans to integrate TradeBeam’s SaaS applications into its CDC Supply Chain product line, which is expected to help customers improve supply chain visibility and automate their import and export global trade management and compliance processes.
TradeBeam also offers additional cross-sell opportunities for CDC Software’s enterprise solution customers, who source and sell globally.
In turn, TradeBeam customers are expected to benefit from CDC Ross ERP, CDC Factory’s manufacturing operations management solutions, CDC ActivPlant’s enterprise manufacturing intelligence solutions, and CDC eCommerce’s multi-tenant eCommerce platform for retailers and brand manufacturers.
‘This is a very synergistic combination on many fronts,” said Edward Flaherty, CEO of TradeBeam, in a statement.
Flaherty said that the company’s 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 Software’s technology and business infrastructure, especially their extensive operations in China, and the company’s broad portfolio of complementary solutions,” he said. Flaherty added that parts of the Chinese government are already users of TradeBeam’s import and export compliance 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 Bruce Cameron, president of CDC Software.
Cameron said that like many of the company’s past acquisitions, TradeBeam fits into CDC Software’s disciplined acquisition criteria and is expected to be earnings accretive immediately.
“We also believe our margin will expand further as we take advantage of more cross selling and cost savings opportunities when TradeBeam is fully integrated into CDC Software’s global business and technology platform,’ he said.
Cameron said that TradeBeam and CDC Software share many complementary vertical markets, including financial services, retail, medical and high-tech and logistics, which the company expects will present strong cross-sell opportunities.
“We are especially pleased to see signs of a rebound in the global automotive market, especially in China. Notably, we also share common customers such as General Motors (News – Alert), Johnson Controls, Inc., Renault and Stryker,” he said.
Cameron said that the company believes that TradeBeam technology, with its numerous patents, is an excellent addition to the company’s already strong SaaS product portfolio and that it will help to further increase the company’s recurring SaaS revenue
Source: CDC Software