Digital Dispatch Systems Inc. has agreed to purchase all shares of Mobisoft Oy for $7.7 million in a deal subject to a definitive agreement and regulatory approvals in Finland and Canada. The transaction, which calls for nearly $4.1 million in cash and the remainder to be paid in Digital Dispatch shares, is expected to close before the end of next month.
The acquisition will pair Mobisoft’s automated dispatching and wireless data transfer applications for passenger transport with Digital Dispatch System’s plan to develop a taxi fleet management system for small fleets with shared call centers, Mobisoft CEO and Managing Director Heikki Karintaus said.
“The enterprise taxi dispatch market for large fleets is maturing and saturating,” Digital Dispatch CEO Vari Ghai said. “The hosted application service provider recurring revenue model of Mobisoft provides us with the ideal solution to address this huge opportunity.”
More than 2,000 taxis are already controlled using Mobisoft software in Finland and it has been expanding its reach in the United Kingdom.
Digital Dispatch to buy Mobisoft
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