ATLANTA -- CDC Software Corporation , a hybrid enterprise software provider of on-premise and cloud deployments, announced it acquired Information Development Consultants, Inc. (iDC), a cloud-based software as a service (SaaS) enterprise resource planning (ERP) software solution provider for the state and local government and not-for-profit (NFP) markets.
This marks the latest acquisition in CDC Software's SaaS roll-up strategy to significantly expand the market footprint of its CDC gomembers cloud-based enterprise software solution.
The iDC solution will be integrated into the CDC gomembers enterprise product line and will help expand its solution into the state and local government markets. Last February, CDC Software acquired computility, a SaaS association management software solution featuring integrated web modules and web collaboration tools for NFP organizations.
Privately held iDC is headquartered in Chicago, and has developed the scalable SaaS government fund accounting and ERP solution 4gov(R) for state and local governments, as well as PlusFund(R) for NFPs. The company supports customers that range in size from small communities to national governments and also includes state government agencies, cities, counties, airports, park districts and special agencies in the U.S., and NFPs, donor-based organizations and religious groups. iDC believes it was one of the first to offer SaaS solutions for the state and local government markets and the only company to offer a true web-based SaaS government fund accounting solution.
According to INPUT, a worldwide market intelligence research and consulting firm, the government market is considered one of the largest and fastest growing market segments of the IT market. INPUT forecasts the state and local government market for vendor-supplied IT systems to increase from $49.6 billion in 2009 to $60.1 billion by 2014, with a compound annual growth rate of 3.9 percent. The software products segment of this market is projected to grow from $6.9 billion in 2009 to $9.1 billion by 2014, the fastest growing segment in this state and local government category with a five year compound annual growth rate of 6.7 percent.
CDC Software acquired gomembers at the end of 2009 and offers on-demand SaaS and on-premise enterprise solutions for NFP and Quasi-Governmental Organizations. The CDC gomembers platform is at the center of CDC Software's strategy to acquire complimentary SaaS solutions targeting the NFP market. CDC Software also offers comprehensive on-premise and SaaS solutions including eCommerce, ERP, manufacturing operations management, supply chain execution, global trade management and customer relationship management (CRM).
We are extremely excited to complete the acquisition of iDC," said Paul Plaia III, president of CDC gomembers. "It will help us enter into the state and local government markets and further expand our presence in the NFP market. It's important for governments to prove to their constituents that they are committed to balancing government spending with revenue. We believe that having a robust SaaS financial management system like the iDC Solutions give the government executives and elected officials the tools they need to plan and manage the public money. We also believe that the state and local government markets offer strong revenue opportunities since e-government has grown steadily over the years. We plan to continue evaluating more companies like these as we build scale and expand globally in the key NFP and Government vertical markets.
"Most importantly, we also look forward to working with iDC customers and offering them our high quality solutions and services and access to our broad global business and technology infrastructure. We also welcome Carolyne Turner and Daryl McPherson, founders and senior executives at iDC to CDC Software. They will continue to offer their extensive expertise in this market and management acumen to iDC customers and to the CDC gomembers business."
Plaia added, "The iDC acquisition not only fits strategically, but it also meets our disciplined acquisition criteria and is expected to be earnings accretive immediately. This acquisition is part of our SaaS roll-up strategy to expand CDC SaaS solutions. As we have stated previously, our corporate goal is to grow our recurring SaaS revenue stream, along with maintenance revenue from our on-premise customers, to about 70 percent of our total revenue over next few years. Therefore, we are planning on making more investments to further expand our footprint in the growing SaaS space."
In addition to gomembers and computility, CDC Software's other recent SaaS acquisitions include Truition, an eCommerce solutions provider, and TradeBeam, a provider of SaaS global trade management solutions; and investments in eBizNET Solutions, a provider of SaaS supply chain execution solutions, and Marketbright, a SaaS marketing automation solutions provider.
