CDC Software Corporation is expanding its reach in China with the announcement of a stake purchase in a Chinese ERP provider.

CDC Software has executed a term sheet to acquire up to a 51% stake in Beijing-based Hejia Software Technology Company Ltd, an 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.

The stake will be acquired in three tranches prior to March 31, 2012. 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 global infrastructure to expand sales of its own products.

Founded in 1998, Hejia Software Technology is an ERP vendor in the China enterprise market, and currently has offices in Shanghai, Guangzhou, Changzhou, and other places throughout the China region.