Digital Dynamics, Inc. (DDI) has proudly announced the successful transfer of 100% of the company’s shares to an Employee Stock Ownership Plan (ESOP).
An ESOP — a qualified retirement plan that buys, holds, and sells company stock for the benefit of the employees, providing them with an ownership stake in the company — provided the ability to slowly transition leadership of the company over time, and reward the team who helped the company become successful.
This move follows a lengthy process undertaken by the original founders and shareholders of the now 40-year-old company to arrange for their succession, and at the same time, reward their loyal employees with an ongoing equity interest in the business.
Customers and partners of DDI will find all aspects of its business activities continued with the same level of attentiveness and professionalism they have enjoyed for decades, with a definite enhanced sense of pride.
“This is a significant development for the future of DDI, which the employees have positively embraced. They are more committed than ever to continuing the success of the company by serving its customers”, commented Daryl A. Gault, President and CEO since January 2012. “Moreover, the DDI senior management team will remain intact as will the current Board of Directors”, said Gault, also Chairman of the DDI Board.
According to The Employee Ownership Foundation’s 24th Annual ESOP Economic Performance Survey, the majority of ESOP companies demonstrate increases in productivity, revenue, stock value, and profitability, all of which benefit employees.
ESOP Partners, an ESOP consulting and administration firm in Appleton, WI, assisted with the sale and will continue to work with the company as the ESOP consultant and third-party administrator.
About Digital Dynamics, Inc.
Founded in 1977, and headquartered in Scotts Valley, California, the company has evolved into a multi-product supplier of OEM computer equipment, and a manufacturer of a broad product line of innovative OEM control system products. DDI’s core business is based on sophisticated engineering, high-quality manufacturing, and aggressive customer support.