Authentidate Holding Corp. announced its plan to acquire Parascript was canceled.
Parascript told Authentidate it was terminating the agreement it entered into this past August because the deal was not completed by Dec. 31, 2008, according to a news release. The companies had tried to restructure the agreement after the breakdown of the credit market and changes to Parascripts business, but could not agree to new terms. Originally Authentidate said it would buy the Boulder, Colo.-based image and pattern recognition software developer for $10 million in cash and a five-year note worth $20 million.
Berkeley Heights, N.J.-based Authentidate develops Web-based workflow management services and provides health information exchange.