| Share

CDC Software Completes Acquisitions of Truition and gomembers



SYDNEY 2December, 2009 — CDC Software Corporation (NASDAQ: CDCS), a global provider of enterprise software applications and services, today announced it completed the acquisitions of Truition Inc., a leading on-demand e-Commerce platform provider for retailers and brand manufacturers, and gomembers, a leading provider of software as a service (SaaS) and on-premise solutions for the Not-For-Profit (NFP) and Non-Governmental Organizations (NGO) market.

As previously announced, these acquisitions are at the center of CDC Software’s “roll-up strategy” to capitalize on the growing on-demand software market. The Company believes that the products from these acquisitions will complement CDC Software’s on-premise solutions in key verticals that include NFP/NGO, retail, financial services, consumer electronics, apparel, consumer packaged goods (CPG), travel/leisure/loyalty and sports/entertainment. With these acquisitions, CDC Software can offer customers multiple deployment options, such as on demand, on-premise and hybrid, a blend of on-premise and on demand solutions, that best fit their business requirements.

Specifically, the Truition acquisition is expected to open up the business to consumer market (B2C) for CDC Software solutions, as well as help position CDC Software at the forefront of the enterprise market with its ability to offer an end-to-end supply chain execution solution – from raw materials to the end consumer. Founded in 1998, Toronto, Canada based Truition has delivered SaaS e-commerce solutions to more than 150 customers in 10 countries that include Sirius XM Satellite Radio, Dell Financial Services, Fujitsu, Philips, Major League Baseball, Wolford, Genco, American Airlines, National Football League (NFL), National Basketball Association (NBA), Sears, Starwood, United Airlines and National Hockey League (NHL), to name a few.

Founded in 1996, gomembers delivers enterprise solutions to more than 150 customers, utilizing more than 1,500 seats, that include trade groups, professional societies, medical-based not-for-profit organizations, associations, hospitals, colleges and universities, certification bodies, fundraising groups, individual member-based groups, NFP management companies and donor-based organizations. Its customers can automate constituent communications and development, member services, constituent-to-constituent collaboration, ERP, CRM, financial management, transaction processing and e-commerce all from a single platform. Customers include: The Armed Forces Communications and Electronics Association International, Water Research Foundation, University of Iowa and The United States Conference of Catholic Bishops, to name a few.

“We are excited to complete these two SaaS acquisitions which we believe will be earnings accretive immediately and hold a compelling valuation,” said Peter Yip, CEO of CDC Software. “Truition and gomembers will help us gain strong traction in the growing SaaS market. Truition, in particular, is expected to open up the B2C market for our solutions while we believe gomembers will help position us as a leading SaaS player in the NFP/NGO market. From a revenue perspective, we believe these acquisitions offer numerous cross-sell opportunities with our CDC solutions.

“We believe customers of these acquired companies will also benefit significantly from the combination of their existing solutions and CDC Software’s compelling global technology and business platform. This technology and business platform features an infrastructure of multiple complementary applications and services, domain expertise in vertical markets, cost effective product engineering centers in India and China and a worldwide network of direct sales and channel operations. We believe our global platform is also a key reason why we have successfully integrated acquisitions that have resulted in a deeper and broader product portfolio, expanded geographic reach, and increased vertical expertise.”

These acquisitions mark the latest of previously announced acquisition plans undertaken by CDC Software. Last quarter, CDC Software completed the acquisition of WKD Solutions Ltd., a leading provider of supply chain event management solutions marketed under the brand Categoric. Last month, CDC Software completed the acquisition of Activplant, an enterprise manufacturing intelligence solution provider, that helps solidify CDC Factory’s leadership in the packaged manufacturing operations management (MOM) market.

For further information please contact:

Jimmy Hong
CDC Software Australia
(02) 8870 7287
jimmy.hong@cdcsoftware.com.au