CDC Software Completes Acquisition of c360

CDC Software, a wholly owned subsidiary of CDC Corporation and provider of enterprise software applications, today announced that it has completed the purchase of c360, a global provider of CRM add-on products, industry-specific CRM solutions and CRM development tools for Microsoft Dynamics CRM. The acquisition is structured as 50 percent cash and 50 percent stock in CDC Corporation valued at $5 per share, which is a 25 percent premium to the share price on April 11, 2006. This will be paid out over a three year period.

As part of CDC Software, c360 and its network of over 450 channel partners will be able to participate in its Franchise Partner Program to fund market expansion, lead generation and accelerated product localization in geographies targeted for rapid growth. Through direct cash investments, equity investments, lines of credit or a combination of these, CDC Software will invest up to $20 million in selected distribution franchise partners.

“CDC Software’s acquisition of c360 reflects their desire to take advantage of the fast growth of Microsoft Dynamics CRM in the market,” said Brad Wilson, general manager for Microsoft Dynamics CRM. “c360 has been a strong partner for us and we look forward to their accelerated investment in new products and vertical solutions for our platform.”

“We are excited to complete the agreement and join the CDC Software family,” said John Gravely, co-founder and chairman for c360. “With the strong financial backing of CDC Software and its commitment to fund its channel sales partners, I’m confident in our ability to accelerate our industry focused Microsoft CRM product development and maintain a high level of customer satisfaction, while we continue to aggressively expand our partner channel worldwide.”

With its full management team remaining intact, c360 will operate as a highly complementary, distinct business unit within CDC Software that is focused on providing high-volume, shrink-wrap functional and industry add-ons for Microsoft CRM. The organization will remain a Microsoft ISV and continue to sell its solutions through its network of authorized channel partners.

c360 joins market-leading enterprise solutions including Ross Enterprise Resource Planning (ERP) and Pivotal Customer Relationship Management (CRM) as part of the ubiquitous enterprise solutions that CDC Software delivers to companies around the world to improve their business operations.

“With the addition of c360 to the CDC Software family, our customers will benefit from our expanded suite of proven enterprise applications,” said Eric Musser, executive vice president, strategy, mergers and acquisitions, and chief technology officer for CDC Software. “This strategy of aligning ourselves with complementary companies continues to broaden CDC Software’s growing global reach through expanded solution offerings and channel sales partners.”

“CDC Software has completed another important acquisition,” said Jane Biddle vice president, global manufacturing research for AberdeenGroup in Boston. “The c360 solution will not only enable CDC Software to broaden its presence in the global CRM markets with clearly segmented offerings, but will also gain access to a broad network of on-the-ground distributors, and potentially streamline the way that its solutions are purchased.”