| CDC to acquire up to 51 percent in Hong Kong based CMS company Vitova |
CDC Software, a company that provides enterprise software applications and services, has said it has executed a term sheet to acquire up to a 51 percent stake in Hong Kong-based Vitova Ltd., a leading enterprise content management (ECM) provider in China. CDC said it also has a right of first refusal to acquire Unis Vitova, the company’s Beijing-based affiliate and a provider of records archive management software. It said this 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 completion of its own due diligence exercise. Vitova is an ECM provider in China. Some of its technology was originally developed at two renowned universities, the Chinese University of Hong Kong and the Tsinghua University in Beijing. Vitova's ECM Solution improves the document handling cycle by capturing, indexing, searching and archiving under strict security control. It manages documents in paper, e-mail, fax or Microsoft Word/Excel format. The ECM solution is compliant with the China Archival Law, which helps archivists to keep proper records. Microsoft Hong Kong is said to have recently presented Vitova with the “Best ISV of the Year 2009” award for the third time. The award recognizes partner success in delivering exemplary solutions for customers. Vitova's customers include DBS Vickers, Hong Kong Jockey Club, Kerry Logistics, United Asia Financial, the Treasury, Commerce Department Marine Department and the Department of Health of the Hong Kong SAR Government. In its statement, CDC said the acquisition of Vitova is part of its plans to expand its geographic footprint and increase sales by accessing rapidly growing economies. If the acquisition is completed, CDC Software would resell Vitova's solutions under the brand CDC DMS, leveraging what it believes to be significant cross selling opportunities to its 6,000 worldwide customer base. Moreover, Vitova would integrate its DMS software to CDC Software’s Ross ERP, CDC Supply Chain, Pivotal CRM and CDC Platinum HRM solutions. As part of its software-as-a-service (SaaS) strategy, CDC plans to roll out a Vitova DMS solution utilizing a SaaS model. |
