Digital Dispatch Systems Inc. has dropped plans announced in July to acquire Maddocks Systems Inc.
Maddocks is a supplier of enterprise and operations software to the truckload and private carrier sectors. Digital Dispatch provides mobile communications and software largely to van and service fleets.
"We remain impressed by Maddocks' products and technology," said Vari Ghai, President and CEO of Digital Dispatch in the company’s announcement, "yet it is clear, given the results of our due diligence, combining our operations is not in the best interest of our shareholders.
"I'd like to reemphasize the fact that this was a non-binding agreement. Companies that disclose non-binding deals before due diligence often run the risk of announcing transactions that do not get completed, however, we felt that it was prudent for us to do so."
In distributing the Digital announcement to trucking media, Maddocks noted that it “is moving ahead as a successful private company” and has signed five new fleet customers in the past two weeks. Maddocks founder Bob Maddocks has announced his availability for press interviews on Friday, Sept. 17 to discuss recent events.