CDC Software Acquires Remaining 49 Percent Of Supply Chain Management Subsidiary, IMI
CDC Software, a wholly owned subsidiary of CDC Corporation and a provider of industry-specific enterprise software applications and business services, recently announced it has acquired the remaining 49 percent of its subsidiary, Industri-Matematik International Corp. ("IMI") from Symphony Technology Group ("Symphony"). This acquisition gives CDC full ownership of IMI and will, in turn, allow CDC Corporation to report 100 percent of the profits from the IMI subsidiary starting in the fourth quarter of 2007. The acquisition is not expected to materially impact revenue as CDC Corporation has already been reporting full revenue for IMI under US GAAP rules for majority held subsidiaries.
"This was the preferred result of our initial agreement with Symphony, which we entered into almost five years ago," said Eric Musser, president and CEO of CDC Software." We believe this has turned out to be a very good acquisition for us, having paid less than one-times revenue for a software business with strong operating profits. IMI has been operating very efficiently with EBITDA margins above 20 percent and maintenance revenue retention of approximately 95 percent in 2007. The IMI solutions are highly complementary to those we recently obtained through our acquisition of Catalyst International and we have brought these two solutions together to form our CDC Supply Chain suite for high-volume distribution environments."
"We are proud to count many of the distribution and retail industry leaders around the globe as customers using CDC Supply Chain solutions today," said Per Norling, president of CDC Supply Chain. "Our blue-chip customer list includes Boeing, Campbell Soup, Saks Fifth Avenue, Sherwin Williams, Reebok, Canadian Tire, The Container Store, JM Smuckers, Pepsico International and more. We also recently announced the implementation of the CDC Supply Chain Solutions at a new parts distribution and packaging center of Shanghai General Motors in China and they intend to implement CDC Supply Chain at three additional facilities as they are built. Our customers are measuring strong returns from our solutions and overall customer satisfaction levels have been steadily improving since we became part of CDC Software five years ago."
CDC Software originally acquired a majority interest in IMI in September 2003 through a joint venture with Symphony whereby CDC owned 51 percent and Symphony owned 49 percent. In the fourth quarter, CDC acquired the remaining 49 percent of IMI in exchange for loan forgiveness to Symphony. The total cost to CDC for 100 percent of IMI was approximately US $28M. Additional information regarding IMI and Symphony is available in CDC Corporation's Annual Report Form 20-F for the year ended December 31, 2006.
About CDC Corporation
The CDC family of companies includes CDC Software focused on enterprise software applications and services, CDC Games focused on online games, and China.com focused on portals for the greater China markets. For more information about CDC Corporation, please visit www.cdccorporation.net.
About CDC Software
CDC Software, The Customer-Driven Company, is a provider of enterprise software applications designed to help organizations deliver a superior customer experience while increasing efficiencies and profitability. CDC Software's product suite includes: CDC Factory (manufacturing operations management), Ross ERP (enterprise resource planning) and SCM (supply chain management), CDC Supply Chain (supply chain management, warehouse management and order management), Pivotal CRM and Saratoga CRM (customer relationship management), CDC MarketFirst (marketing automation and lead management), Respond (customer complaint and feedback management), c360 CRM add-on products, industry solutions and development tools for the Microsoft Dynamics CRM platform, Platinum 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, and 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, outsourced business services, application management and offshore development. CDC Software is the enterprise software unit of CDC Corporation and is ranked number 12 on the MBT 2007 Global 100 List of Enterprise and Supply Chain Management Application vendors. For more information, please visit www.cdcsoftware.com
.SOURCE: CDC Software