CDC Software acquires ISL's stake to expand China presence

CDC Software acquires ISL's stake to expand China presence

HONG KONG, March 4 (Xinhua) -- CDC Software, a wholly-ownedsubsidiary of the NASDAQ-listed CDC Corporation, agreed Tuesdaytobuy a controlling stake in a Hong Kong-based vendor of ERPsystems,as part of its strategic expansion in China.

CDC Software will have a 51-percent stake in Integrated SolutionsLimited (ISL) upon the completion of the transaction by the end ofMarch, the companies announced.

Speaking at the agreement signing ceremony in Hong Kong, RaymondCh'ien, chairman of the parent CDC Corporation, declined to revealthe cost of the transaction, citing CDC Software's ongoingpreparation for a public listing in the United States.

But he said two firms were "highly complementary" to each otherinterms of what they offered.

CDC Software sells industry-specific enterprise softwareapplications and services to customers worldwide and has itsstrength mainly in process manufacturing, whereas ISL is a vendor ofEnterprise Resource Planning (ERP) systems for over 150 small andmedium discrete manufacturers, mostly in southern China, he said.

ISL has received several industry awards since it was establishedin 1985, including the Most Outstanding Customized ApplicationDeveloper award from Microsoft, and CDC Software "willhelp ISLexpand its geographic reach" through the global distribution networkof CDC Software, said Ian Whitehouse, CDC Software's chief executiveofficer.

The mission of ISL is to become the leader in providing ITsolutions for small and medium enterprises in the world, ISLChiefExecutive Officer Hilton Law said, adding that the company hada strength in Hong Kong thanks to its multiple languages.

CDC Software currently employed 2,300 people worldwide in over 50countries and was expanding quickly through severalstrategies,including acquisition. It currently ranked 12 among theglobal enterprise software companies and was targeting one of thetop 10 positions in the next couple of years, Whitehouse said.

He said the Chinese software industry was behind several othereconomies, including India, but was catching up recently, addingthat CDC Software was one of the few global software companies thathad their origins in China.

CDC Software was also trying to expand its presence in Chinastrategically, with a new office opened last year in Nanjing andexpected to grow into the company's largest office in terms ofresearch and development capabilities with around 2,000 employees.

CDC Software launched its Franchise Partner Program in April 2006and ISL was the first company it had acquired and the 4th worldwideunder the program.

CDC Corporation was first listed on NASDAQ under the namechinadotcom in 1999 and later changed its name to CDC Corporation tosignal its shift away from a heavy reliance on the internet sectorto more diversified operations and geographic reach.

Raymond Ch'ien said CDC Corporation would be interested in anycompanies that might complement its business and increase itsstrength, but it currently had no plans for acquisitions in theChinese mainland.