CDC to Acquire Stake in ERP Provider
CDC Software Corporation, a global provider of enterprise software applications and services, executes a term sheet to acquire up to a 51 percent stake in Beijing-based Hejia Software Technology Co. Ltd, a major ERP software provider in China.The acquisition of this interest in Hejia Software is subject to several customary closing conditions, including the execution of definitive documentation related to the deal, the receipt of all requisite approvals and consents, and the satisfactory completion of due diligence by CDC Software.
Founded in 1998, Hejia Software Technology is a major ERP vendor in the China enterprise market, and currently has offices in Shanghai, Guangzhou, Changzhou and other places throughout the China region. The company's main product, HJSOFT, is a web-based solution featuring functionality in supply chain management, ERP, quality assurance, financial management and customer relationship management. Hejia Softwares products are used by more than 400 customers in industries that include Industrial, Food and Beverage, Healthcare, Publishing and Chemical.
In the event the acquisition is completed, Hejia Software Technology will be the latest addition to CDC Software's successful Franchise Partner Program and the second franchise partner in China following last year's previously announced acquisition of a majority stake in Integrated Solutions Ltd., a provider of ERP solutions for small and medium-sized discrete manufacturers.
The acquisition of Hejia Software Technology is part of CDC Software's strategic plans to expand its geographic footprint and increase sales by accessing rapidly growing economies. As part of that strategy, CDC Software expects to continue to pursue other strategic investments in China.If the transaction is completed, Hejia Software is expected to resell CDC Software's Ross ERP, CDC Supply Chain and CDC Platinum HRM through an OEM partnership in mainland China, and Hejia is also expected to leverage CDC Software's extensive global infrastructure to expand sales of its own products.