Digital Dispatch, Inc., Richmond, B.C., Canada, has entered into a non-binding Letter of Intent to purchase all the outstanding shares of Maddocks Systems Inc.

Digital Dispatch is a world-wide supplier of mobile communications hardware and software, particularly to mobile workforces and light vehicle fleets. Digital Dispatch is a publicly traded company.
Maddocks, also based in British Columbia, is a provider of trucking enterprise software. Maddocks specializes in Microsoft Windows-based software; its flagship product is called TruckMate for Windows. Maddocks is generally acknowledged as the fourth largest software supplier of enterprise software to the North American truckload industry and is a privately held corporation.
Among the terms noted in the Digital Dispatch announcement were the following:
• Digital Dispatch will pay $10 million in cash with $9 million payable upon closing and $1 million to be paid as an employment retention bonus over the next 3 years. At the option of the shareholders of Maddocks at closing, up to $2 million of the Consideration may be paid in Digital Dispatch common shares priced at $6 per share. A portion of the Consideration will be used to pay off all of Maddocks’ outstanding debt.
• The transaction is intended to be effective August 31st, 2004 and is expected to close on September 17th, 2004 or at a date mutually agreed by both parties.
• The transaction is subject to due diligence by Digital Dispatch and the entering into of a definitive purchase agreement. Both parties can cancel unilaterally prior to the entering into of the definitive purchase agreement. Maddocks and its shareholders have agreed to deal exclusively with Digital Dispatch with respect to the sale of Maddocks for the next 8 weeks.
• Certain key Maddocks employees will be required to enter into employment and non-disclosure contracts with Maddocks and Digital Dispatch.
In a note accompanying the Digital Dispatch release, Maddocks founder and president Bob Maddocks said that he and V.P. Randall Burrell are subjects of a “stay bonus” in the proposed deal. Maddocks noted that the agreement is non-binding and that Maddocks Systems will hold its scheduled user conference Sept 12 through the 15th in Whistler B.C.
“Maddocks employees and customers will gain from the extra resources and products that are available from the merger with Digital Dispatch. This will allow Maddocks to grow faster and internationally. We are excited as we enter the next phase in the growth of Maddocks” Maddocks is quoted as saying in the Digital Dispatch release.
For more information visit www.digital-dispatch.com.