Gillett Evernham Motorsports and Robby Gordon Motorsports announced Friday that the two parties have reached an agreement that resolves the issues originating from their planned merger earlier this year.

There will be no merger, and GEM's lawsuit against Gordon for alleged breach of the merger agreement has been dismissed.

Gillett Evernham filed suit earlier this month against Robby Gordon Motorsports alleging a breach of the terms of the tentative merger agreement.

According to reports, the agreement would have seen Gordon sell his team to Gillett Evernham for $23.5 million. Gordon would have had a 4-year driving contract with Gillett Evernham.

It was announced after the agreement Gordon and Gillett Evernham had reached a partnership in which Gillett Evernham would offer technical and marketing support to Gordon.

"Management personnel for the two teams acknowledge that there were misunderstandings, but both sides acted in good faith throughout, and in the end it was circumstances beyond their control that caused the merger not to proceed," read the