Chinese software firm CDC Corporation has always been a dragon with two heads. Now it looks like they are going to be severed at the neck.
Nasdaq-listed CDC is today best known in China for its online games business, which now overshadows any remaining ambitions that CDC has to be a major internet portal.
But CDC also has an enterprise software unit that has spent the past few years buying up second-tier enterprise software vendors in the west. Needless to say, there are few synergies between peddling online games to Chinese teenagers and selling high-end software to businesspeople. If there were, I'm sure Oracle or SAP would be doing it already.
Peter Yip, CDC's CEO, has belatedly come to the same conclusion and so the company has now filed for an IPO for CDC Software, its enterprise software unit.
According to CDC's press release, the offering should allow CDC Software to provide a “more targeted investment vehicle” for investors seeking to invest only in the enterprise software portion of CDC's diverse businesses.
The offering is currently expected to commence during the fourth quarter of 2007, subject to approval by the SEC.
Chinadotcom, as CDC used to be know, was the first Chinese internet company to list on Nasdaq back in 1999.
More on CDC in these stories.