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content


Digital Dispatch to buy Maddocks Systems

Digital Dispatch to buy Maddocks Systems

Mobile wireless data provider Digital Dispatch Systems yesterday announced that it has signed a letter of intent to purchase all outstanding shares of
  • Written by Urgent Communications Administrator
  • 8th July 2004

Mobile wireless data provider Digital Dispatch Systems yesterday announced that it has signed a letter of intent to purchase all outstanding shares of Maddocks Systems, a private software solutions firm that serves the transportation and logistics industries.

Under the terms of deal, Digital Dispatch will pay $10 million in cash and stock for Maddocks, which claimed 2003 revenues of $8.5 million and a profitable balance sheet so far this year, according to a Digital Dispatch press release. A portion of the cash will be used to pay off all of Maddocks’ outstanding debt.

The letter of intent is non-binding and is subject to due diligence by Digital Dispatch. The transaction is expected to close on Sept. 17.

“Maddocks employees and customers will gain from the extra resources and products that are available from the merger with Digital Dispatch,” Maddocks President and CEO Robert Maddocks said in a prepared statement. “This will allow Maddocks to grow faster and internationally. We are excited as we enter the next phase in the growth of Maddocks.”

Digital Dispatch President and CEO Vari Ghai expressed excitement about the possible merger, which is designed to give the company a leadership role in the trucking industry.

“This allows Digital Dispatch to enter a new vertical market, leverage its devices in the marketplace and exploit its international presence,” Ghai said in a prepared statement. “We are delivering on our promise to invest the use of proceeds from the last financing on acquisitions.”

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