Richmond's Digital Dispatch Systems Inc. (TSX:DD) has acquired Kirkland, Washington-based StrataGen Systems Inc. for US$6 million.
The transit systems management company will pay for the acquisition with US$4.5 million in cash upon closing and the remainder in 15 monthly installments of US$100,000 starting 90 days after the acquisition date.
The deal diversifies Digital Dispatch's product lines and expands the company's geographic markets following the company's acquisition of Finland-based MobiSoft OY announced in August.
The deal expands Digital Dispatch's customer base to include four of the top five and 10 of the top 20 transit authorities in North America. The company also services Finland's para-transit market and portions of the U.K. community transportation system.
StrataGen was founded in 1998 and provides scheduling, dispatching and client management software for public transit and transit services for the disabled
The deal is expected to close at the end of October.
Digital Dispatch's share price range during the past week: between $2.39 and $2.50; 52-week high: $3.37; 52-week low: $2.25.