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CDC WANTS TO CONSOLIDATE SAAS

CDC Software has set out to roll up SaaS companies. And while it's not clear this is a company that can accomplish such a consolidation, it's the sign that the normal market forces are at work. When a lot of new, small companies arise during a technology shift, the M&A wheels start turning.

CDC Software markets Ross ERM and Pivotal CRM, among its main products. "We feel this is the right time to roll up SaaS companies into a formidable group. We feel we have a first-mover advantage," president Bruce Cameron said during a late November conference call about third quarter earnings. As December began, CDC completed the acquisition of Truition, which provides an e-Commerce platform for retailers and brand manufacturers, and Gomembers, which has SaaS offerings for nonprofits and non-government organizations. Meanwhile, the company reported that net income fell to $5.9 million for the quarter ended September 30, down 4 percent from $6.2 million a year earlier. Revenue rose to $50.6 million, up 4.1 percent from $48.6 million from last year's corresponding period. The company showed some strength in license revenue, which rose to $11.9 million in the most recently ended quarter, up from $7.6 million a year earlier

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