The recent stock market crash has temporarily derailed the proposed merger between Sausage Software and Solution 6, Sausage CEO Wayne Bos confirmed on Friday.
Sausage Software cancelled the deal late last week after consultation with shareholders, but Bos indicated a merger could still proceed if the price was right.
"Quite simply we called the deal off because we weren't getting enough value at the price. That's been backed up by the market. Our stock jumped 20 per cent on Friday morning, which tells us we made the right decision. We will keep talking to (Solution 6) -- there are good relationships there -- but we want more value for our shareholders."
While Bos refused to comment on allegations that Solution 6's chief Chris Tyler had previously been arrested and charged for drug trafficking in the US, he said that the situation was not helping stock prices.
Solution 6's share price has dropped from a high of more than $18 earlier this year down to just $3.90 last Friday.
"All of these things are connected to the value of Solution 6 right now," Bos said. "It's unreasonably affecting their share price and their stock is probably undervalued too. The recent crash didn't help matters."