Seven weeks after going public with their plans for a partial merger, distributors Digiland and eXeed have revealed that the deal is off.
Digiland International CEO, Ong Seow Yong, the deal broke down about two weeks ago, in the 11th hour of contractual negotiations.
“Basically we could not arrive at a satisfactory financial agreement,” Ong said.
eXeed managing director Michael Bosnar said he hadn’t closed the door on a deal with Digiland in the future.
From eXeed's perspective, Digiland wasn't prepared to invest enough to seal the deal, Bosnar said.
The parting with Digiland has been a messy process, because the two companies had begun to migrate customers and vendors to eXeed weeks before the deal fell through.
The co-sourcing arrangement between eXeed and Digiland, which covered products and services, was still in place, Bosnar said. For more on this story, see next week's ARN.