SyQuest, a portable hard drive marker that has been losing market share, canceled its acquisition plans with Nomai, citing attempted changes to the terms of the deal. Without delving into details, SyQuest stated in a release that Nomai had attempted to "substantially" alter the terms of the acquisition.
Under the proposed deal, SyQuest would have acquired a 66 percent stake in Nomai in a stock transaction valued at nearly $20.6 million. SyQuest had said it also planned to obtain the remaining Nomai shares at a later date.
Nomai said it stepped away from the deal because of SyQuest's "depressed stock price" and current "state of business."
SyQuest also said it will also resume its court action against Nomai over allegations that it had infringed on its intellectual property rights.