2179754 - DEPLOY-SDM: Cannot update SDM tool

Software Update Manager ( SUM) fails to update the SDM during the phase DEPLOY-SDM with the below error: (Logfile: <Path to SUM>/sdt/log/SUM/DEPLOY-SDM_<XX>.LOG)

Jun 6, 2015 12:35:22 PM [Info  ]: SDM server has been set to standalone mode.
Jun 6, 2015 12:35:22 PM [Info  ]: Auto-updating SDM server...
Jun 6, 2015 12:35:22 PM [Info  ]: AS Java process ID 3 has been started.
Jun 6, 2015 12:35:22 PM [Info  ]:   Command line: <Path to Instance>\exe\sapjvm_4\bin\java.exe -Djava.ext.dir=<Path to SUM>\sdt\tmp\unpack_SDMKit\libs -cp . -jar <Path to SUM>\sdt\tmp\unpack_SDMKit\SDM.jar autoupdate sdmHome=<PAth to instance>\SDM\program ignoreversion=true popDir=<Path to SUM>\sdt\tmp\unpack_SDMKit\
Jun 6, 2015 12:35:22 PM [Info  ]:   Standard out: <Path to SUM>\sdt\log\SUM\OPERATESDM_12.OUT
Jun 6, 2015 12:35:22 PM [Info  ]: Process ID 3 has been started.
Jun 6, 2015 12:35:22 PM [Info  ]: Waiting for process ID 3, name java.exe to finish.
Jun 6, 2015 12:35:33 PM [Info  ]: Process ID 3, name java.exe has been finished, exit code 4.
Jun 6, 2015 12:35:33 PM [Info  ]: Process ID 3, name java.exe has been terminated.
Jun 6, 2015 12:35:33 PM [Error ]: Return code condition success evaluated to false for process java.exe for action ACTION_AUTO_UDPATE.
Jun 6, 2015 12:35:33 PM [Error ]: Cannot execute Java process for autoUpdate.
Jun 6, 2015 12:35:33 PM [Error ]: Could not auto-update SDM server.
Jun 6, 2015 12:35:33 PM [Error ]: Cannot update SDM tool.
Jun 6, 2015 12:35:33 PM [Info  ]: Deployment message for component SAP_JAVASL : Cannot update SDM tool.
Could not auto-update SDM server.
Cannot execute Java process for autoUpdate.
Return code condition success evaluated to false for process java.exe for action ACTION_AUTO_UDPATE.

Further operations like Start / Stop / Update for the SDM tool fails with the exception: java.lang.NoClassDefFoundError: com/sap/sdm/util/init/UtilInitializer

Update of NW 640 or 7.0x Systems with SUM

DEPLOY-SDM, ACTION_AUTO_UDPATE, java.lang.NoClassDefFoundError com/sap/sdm/util/init/UtilInitializer com.sap.sdm.util.init.UtilInitializer, SUM , KBA , BC-UPG-TLS-TLJ , Upgrade tools for Java , BC-CTS-SDM , Software Delivery Manager for Java , Problem