CDC Software to invest US$6mn in strategy change

Monday, June 13, 2011

International firm CDC Software (Nasdaq: CDCS) is investing US$6mn to reposition its business in Brazil and start operating indirectly, tech magazine Computer World reported.

The investment will focus on developing a channel network and acquiring a local company, CDC Software president for Latin America Oscar Pierre was quoted as saying.

The company started operating in Brazil in 2009 with a direct sales model, and "now we are refocusing our efforts to be more proactive," he said.

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CDC has already signed up STA Holding and IN3 Software as local representatives, and the goal is to have five business partners, according to Pierre.

The company is also planning to buy a Brazilian firm focused on products that complement CDC Software's offering. Pierre has visited more than 15 local software companies and is evaluating four of them.

CDC's ideal acquisition target is a company with at least 500 clients and an attractive offering with export potential.

But the goal is not to fully acquire a firm, but to form part of it to provide capital, due to Brazilian law's complexity.

CDC is hoping this move will help strengthen its position to compete with companies such as SAP, Microsoft, Totvs and Oracle.

With more than 25 years of global operations, CDC Software includes among its solutions enterprise resource planning, manufacturing operations management, enterprise manufacturing intelligence, supply chain management, human capital management, government and not-for-profit, customer relationship management and business intelligence.