Digital Dispatch Systems Inc., a global provider of turnkey wireless mobile data solutions, has announced entering into a non-binding Letter of Intent to purchase all the outstanding shares of Maddocks Systems Inc.
Founded by Robert Maddocks in 1981, Maddocks is headquartered in Langley, British Columbia, where approximately 45 of their current 60 employees are located. Their customer list includes the Hudson’s Bay fleet and operators who handle shipping for IBM Canada, McDonald’s, and Home Depot.
Under the terms of the Letter of Intent, Digital Dispatch will pay a total consideration of $10 million in cash with $9 million payable upon closing and $1 million to be paid as an employment retention bonus over the next three years. 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 to by both parties.