CDC Software, a wholly owned subsidiary of CDC Corporation (CHINA), has announced the acquisition of Vis.align, a leading provider of IT support and managed services, for an undisclosed sum.

CDC Software says this expands its services portfolio, generates cross-selling opportunities, and offers customers additional end-to-end enterprise solutions and services. The Vis.align acquisition provides CDC Software customers with a comprehensive services offering including infrastructure and application optimization, application development and outsourced managed services.

"This acquisition positions us as an industry leader in offering a hybrid mix of solutions and services with a deep understanding of our customers' industry-specific requirements," said Bill Geist, senior vice president, Technical Services, of CDC Software. "The synergy of this acquisition is compelling since Vis.align has impressive expertise in our target industries, their services complement our Ross Enterprise and Pivotal CRM product lines, and the depth and breadth of our global operations will significantly expand the footprint of Vis.align's managed services business worldwide. Since managed services now appeal to companies of all sizes we expect to expand sales opportunities and improve revenue visibility as customers see the bottom-line value of this service.

With over US$20 million in sales during 2005, Vis.align is anticipated to be earnings accretive to CDC Corporation in 2007. The transaction was structured to include a two-year earn-out running through to December 31, 2008 based on Vis.align achieving certain revenue milestones. The earn-out, if achieved, is to be paid in a combination of cash and shares in CDC Corporation.

"Vis.align 's extensive vertical market expertise, especially in manufacturing and consumer packaged goods, complements the strengths of CDC Software," said Jennifer Horrocks, CEO and founder of Vis.align. "This is a winning combination that will enable our businesses to cross-sell solutions and services worldwide with the focus on improving business performance and profitability allowing customers to work with one vendor to address their total enterprise solutions and services needs.


Please enter your comment!
Please enter your name here