Peerless Systems Corp. said Friday that it has ended an asset purchase agreement with Prism Software Corp. due to various closing conditions not being satisfied.

The El Segundo-based imaging and networking technology services provider said that it will not have to pay a termination fee.

Peerless in February agreed to buy most of the assets of the Irvine-based software developer for $1.75 million in cash and the right to receive $1.5 million in Peerless stock if some conditions were met. The conditions were not met.

Shares in Peerless were flat at $1.99 in early trading Friday.