CDC Corporation's (CHINA) CDC Software says it has signed a binding term sheet to acquire a 22% stake in Chinese business intelligence solutions firm Tenly Software and the investment will be completed by May 2008.
Tenly Software's main product line is called the Markway Analysis System and it offers an analytics platform combining statistical analysis, data mining and graphic tools. Markway Analysis System has good "guanxi" and is certified by the Chinese Statistics Association as the national standard of statistical analysis and data mining platform.
The term sheet also provides CDC Software with the option to increase its stake in Tenly to approximately 37%. Upon completion of the initial investment, the parties intend that CDC Software will be entitled to appoint one representative to Tenly's board of directors. The completion of this initial investment in Tenly is subject to standard closing conditions, including the completion of due diligence by CDC Software and completion of definitive transaction agreements.
The two companies also intend to form a joint venture in which CDC Software is expected to provide implementation services and support for Tenly customers and Tenly is expected to sell CDC Software solutions to its customer base. The parties intend that CDC Software will hold a 60 percent interest, and Tenly, a 40 percent stake in this joint venture.
