The web and TV retailer, formerly ShopHQ, grew e-commerce 0.3% in the first quarter.
CDC Software, which provides software to more than 6,000 companies has purchased Truition, whose online retail clients include MLB.com.
E-commerce platform provider Truition Inc. announced today an agreement to be acquired by CDC Software Corp., a provider of business software to more than 6,000 companies. The sale price was not disclosed.
Truition says its CMS platform is used by more than 150 e-commerce sites in 10 countries, including the operator of MLB.com, MLB Advanced Media, No. 160 in the Internet Retailer Top 500 Guide, (a PDF version of the company’s financial and operating profile can be ordered by clicking on its name). It also has clients in travel, such as American Airlines and hotel chain Starwood, and in the financial arena, including Dell Financial Services.
CDC provides software for supply chain management, planning, warehouse management and accounting, including its CDC Ross ERP enterprise resource planning application that covers a range of business functions.
Truition provides its technology in a software-as-a-service model, meaning that it hosts the software and clients access it via the Internet. “Truition and CDC have recognized that the software-as-a-service e-commerce technology marketplace today is too fragmented and customers want more tightly integrated solutions that manage all aspects of front- and back-office processing, all from well-capitalized partners that can meet the sophisticated demands of international companies,” says Truition CEO Wignall. “Truition has had tremendous success over the past few years with truly global clients, and leveraging CDC’s existing team of professional services people will allow us to expand our highly respected 24/7 service capabilities to other parts of the world, much more quickly and effectively than if we were to continue on our own.”
Truition brought in CEO Bill Wignall in May 2007 to make the company more attractive to potential buyers, says Michael Miller, vice president of business development at e-commerce consulting firm FitForCommerce, who had been a Truition sales executive until leaving the company in June 2008. “Truition was a company with a focus-return to profitability,” says Miller.
Truition is in its second year of profitability, and the acquisition by CDC strengthens its financial position, says Gary Black, general manager of Truition’s North American business unit. “In today’s current financial conditions with access to capital still limited, we feel that was the right strategy,” Black says. “Most of our direct competitors continue to burn millions of dollars per year with no ability to raise additional funds. Truition was already on sound financial footing and this announcement makes that even more so.” The company does not disclose its revenue, and employs between 50 and 100, a number that varies according to demand, Black says.
Miller says most of Truition’s new clients in the past year have come from Europe, a product of the company’s acquisition in 2005 of German e-commerce software provider Ageto. The CDC acquisition could be good news for Truition clients, he says. “With the right allocation of R&D; funding for product enhancements, it could be quite a positive for current Truition customers. The key to success here is wrapping Truition into the CDC fold, while continuing to develop and showcase Truition’s strengths to the marketplace,” Miller says. “Truition’s now gone from maintain mode-riding out the storm-to someone to watch.”