Dicker Data and eXeed have broken off merger talks after failing to agree on terms of the agreement.
As reported in ARN in June, talks between Dicker owners, Fiona and David Dicker, and eXeed’s Michael Bosnar began more almost six months ago, however, they irrevocably broke down, earlier this week.
Merger contracts were reportedly signed off and parties ready to proceed with merger arrangements as late as last Friday.
The unexpected decision not to press ahead was reportedly made on Tuesday.
It is understood that the decision was entirely unilateral and had nothing to do with the financial terms of the agreement . However, the two parties have signed a non-disclosure agreement and would not reveal the nature of the dispute.
“All I can say is that we could not agree on merger terms and that Dicker Data is not going to be looking for another investor at this stage,” the distribution outfit’s managing director, Fiona Dicker, told ARN.
eXeed management, which has been actively seeking expansion opportunities, told ARN the outcome of the negotiations was dissapointing.
“We are very disappointed [the deal] didn’t go ahead, considering the amount of work and money invested in due diligence over the last few months,” the sales and marketing company's top executive, Michael Bosnar, said. “It is not up to me to comment on what went wrong, but with negotiations like this one there’s always a risk that something will fall through – and it did.”
Had the deal gone ahead, the combined entity would have been a likely winner in HP's ongoing distribution revamp. Nevertheless, industry sources indicate there were some reservations about the ability of the two companies to achieve a cultural fit.
Bosnar said he would now focus on other investment opportunities. An announcement was expected to be made as early as next week.
It remains to be seen whether the ongoing search for a suitable suitor to the Dickers' distribution kingdom would now be put off indefinitely.