CDC Software, a provider of enterprise software applications and services, has agreed to acquire up to 51% stake in Hong Kong-based enterprise content management (ECM) provider Vitova.
Under the agreement, CDC has the right of first refusal to acquire Unis Vitova, the company’s Beijing-based affiliate and a provider of records archive management software. The acquisition is subject to several customary closing conditions, including the execution of definitive documentation related to the transaction, the receipt of all requisite approvals and consents, and the satisfactory completion of due diligence.
On completion of the transaction, Vitova will be the new addition to CDC Software’s franchise partner program. The acquisition of Vitova is part of the strategic plans to expand geographic footprint and increase sales by accessing growing economies, CDC Software said.
CDC Software intends to resell Vitova services under the brand CDC DMS. In addition, it also plans to roll out Vitova DMS service utilising a SaaS model, as part of its software-as-a-service (SaaS) strategy.
Late last year, the company has launched its SaaS rollup strategy through the acquisition of SaaS software companies gomembers and Truition. Vitova intends to integrate its DMS software to CDC Software’s Ross ERP, supply chain, CRM and platinum HRM services.
Bruce Cameron, president of CDC Software, said: “We are very pleased with our planned investment in Vitova, and hope to help expand the market share of its award-winning ECM solutions in the global arena. This planned acquisition is expected to help us accelerate our organic growth rate through the cross selling chemistry between Vitova and CDC Software.
“As we have previously stated, this type of potential investment and partnership in China are part of our long-term plans to significantly increase revenue in China and eventually position this region as our second largest revenue generator.”
