CDC Software Acquires TradeBeam

CDC Software has acquired TradeBeam - a provider of on-demand software as a service (SaaS (News - Alert)) supply chain visibility and global trade management solutions. TradeBeam, based in San Mateo, California, represents CDC Software's largest SaaS acquisition so far.

The companies said the acquisition makes sense on several fronts:

• CDC Software,which is a hybrid enterprise software provider of both on-premises and cloud deployments, and TradeBeam have common customers.
• The acquisition is CDC Software (News - Alert)'s latest move in expanding its portfolio of cloud-based solutions and increasing recurring SaaS revenue.
• CDC Software plans to integrate TradeBeam's SaaS applications into its CDC Supply Chain product line, which it says will improve supply chain visibility, and automate import and export global trade management and compliance processes.
• TradeBeam also offers additional opportunities for CDC Software's enterprise solution customers, who sell globally.
• TradeBeam customers are expected to benefit from CDC's solutions, too, the companies said.

TradeBeam holds several patents and has more than 1,000 customers with users in more than 100 countries worldwide. CDC Software said that that global trade management is a growing market for the company.

'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. 'Like many of our 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.'

'This is a very synergistic combination on many fronts,'' added Edward Flaherty, CEO of TradeBeam. "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 Software's technology and business infrastructure, especially their extensive operations in China, and the company's broad portfolio of complementary solutions. In fact, parts of the Chinese government are already users of TradeBeam's import and export compliance solutions.'

In a related development, CDC Software has added Beijing Hinge Xin Yuan Software Co., Ltd. as the latest franchise partner that it expects will help expand its CDC Platinum HRM solutions into the large state-owned enterprise (SOE) market in China.