Temenos has pulled out of a major bid to merge with UK software giant Misys.
The Swiss firm, which like Misys sells systems to banks, withdrew its bid after the parties failed to agree on terms.
Misys is still being pursued by two other private equity bids, one from Vista Equity Partners, and another a combination of ValueAct Capital and CVC Capital Partners.
The Vista bid reportedly value Misys at around £1.2 billion. The level of the other bid is less clear.
While a Temenos merger would have seen the combination of two software firms, financial analysts and some Misys shareholders had insisted there were better prospects and quicker value creation on offer in a private equity takeover.
A Temenos bid could also have led to staff cuts or relocation, it was speculated, because the deal proposed that the Temenos Swiss office would become the combined group's head office.
Misys said in a statement that "despite extensive discussions [with Temenos], the parties were unable to agree final terms of a transaction". It said it "continues to be in discussions" with the private equity firms.