CDC completes definitive agreement to acquire Truition
CDC Software Corporation, a global provider of enterprise software applications and services, announced it has completed a definitive agreement to acquire Truition Inc., a leading On Demand e-Commerce platform provider for retailers and brand manufacturers. This represents a move that not only opens up the business to-consumer market for CDC Software solutions, but helps to position CDC Software at the forefront in the enterprise market with its ability to offer an end-to-end supply chain execution solution from raw materials to the end consumer.
The closing of the Truition acquisition is expected to occur within the next two weeks and is subject to normal and customary closing conditions. This acquisition represents the first of the two previously announced software-as-a-service (SaaS) companies it plans to acquire as part of its roll-up strategy to acquire SaaS companies that complement its on-premise solutions. CDC Software's SaaS roll-up strategy focuses on key verticals that include retail, financial services, consumer electronics, apparel, consumer packaged goods (CPG), non-profit, travel/leisure/loyalty and sports/entertainment.
With these planned acquisitions, CDC Software enters a market space that is showing projected strong growth. According to Gartner's May 2009, “Market Trends: SaaS report for 2008-2013,” Gartner is projecting the worldwide SaaS market, currently $6 billion in 2008, will show consistent growth through 2013 when it is expected to total more than $14 billion for the enterprise application market.
Founded in 1998, venture capital-backed Truition has delivered SaaS e-commerce solutions to some of the leading global brands 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. Based in Toronto, Canada, Truition serves more than 150 customers in 10 countries. Its e-commerce platform includes unique functionality such as both traditional “fixed price” and online auction software, full front-end and back-end capabilities such as inventory and order management, community shops, multilanguage/currency, and an industry-leading “time to install”. Truition's products complement CDC Software's comprehensive list of vertical industries.
“We believe this acquisition will be earnings accretive immediately and holds a compelling valuation,” said Bruce Cameron, president of CDC Software. “Truition helps us gain a strong foot hold in the SaaS market, and we believe it opens up the B2C market for our solutions. Truition now enables CDC Software to have a hybrid architecture to offer customers the choice of an on-premise solution or an on–demand offering, depending on what best fits their specific business needs. We also believe we are the only enterprise vendor that can now offer an end-to-end supply chain execution solution that addresses each touch point in the supply chain - from the supplier of the raw materials to the end consumer. From a revenue perspective, we believe there are numerous cross-sell opportunities with our CDC Supply Chain and Front Office solutions, especially with our installed base customers operating in the financial services and retail markets. Truition solutions can enhance our customers' online brand presence, as well as potentially help to increase their online sales worldwide.