Garrison Huang (Harris Technology)
Harris Technology has announced it will no longer acquire US-based drone accessory supplier Fstop Lab for $2 million.
The deal, which was announced on 14 June, came undone after Fstop Lab decided not to proceed with the deal "based on the current agreement".
"The board of HT8 [Harris Technology] does not believe it is practical to take any action to enforce the current agreement, given the nature and geography of the Fstop Labs business and the vendor," managing director Garrison Huang said in a statement to shareholders.
Huang explained that the current agreement is unlikely to proceed to completion; however both companies are in discussions regarding formulating an alternative agreement.
He added that there were no costs resulting from the acquisition process at this point.
Back in June, when the plans to acquire the US company were announced, Harris Technology hoped the acquisition would result in bringing the business' products into the local market via its own platform and those of US giants such as Amazon and eBay.
Speaking to ARN at the time, Huang said the acquisition would “enhance” its existing retailer business.
“We, as a business, have only been focused on Australia, while Fstop is a business in the US with a big Amazon presence,” he said.
"We want to utilise the platform we have in Australia in combination with Amazon, eBay and even Catch.com, and help expand Harris into the e-commerce space.”
