Distributor Dicker Data is off the block, following a breakdown in negotiations with Exeed for the sale of the business, according to the company's managing director Fiona Dicker.
After six months of negotiations with hopeful acquirer Melbourne-based HP distributor Exeed, Dicker said the company is "not interested in entertaining any [more] offers for the business".
Instead, Fiona said the company would go it alone and is in the throes of implementing new and improved backend systems. "We're putting in something that's already been tried, tested and proven. We really just want to focus on customer satisfaction and coming through with the number for vendors." She wouldn't elaborate any further on the details of the new system.
Dicker said the company "broke down on the terms" of the acquisition with Exeed. "It wasn't the best thing for us to do [be acquired]. We're just going to focus on growing our business," Dicker said.
It is also believed that Dicker Data was also not happy with the price being offered for the business. The acquisition would have made Exeed Australia's largest HP distributor and given it a Toshiba distributorship.
Earlier today, Michael Bosnar, managing director at Exeed said: "You never know with these things, we finally got down to things that both parties wouldn't move on. We would have like it to be concluded about three months ago," he said.
Bosnar said Exeed had spent "a lot of time and money" on due diligence for the acquisition. "When you've got so many different parties involved to appease everybody is difficult at times," Bosnar said. He wouldn't elaborate further saying he had signed a non-disclosure agreement.
Exeed was working on another acquisition and would know whether to pursue it further within a week, Bosnar said. "We'll know within a week if it's serious or not and that encouraging," he said.
Bosnar said that HP and Toshiba--which both distribute through Dicker Data--had been "sympathetic" through the process.