Bedford, Mass. — MRO Software ended its quest to acquire Datastream Systems after its rival declined to negotiate and MRO deemed a hostile bid too costly.

Both companies provide plant asset management software, and MRO Software's revenues are about twice Datastream's, at $185.5 million last year. MRO Software CEO Chip Drapeau said in January that combining the firms made "compelling" sense. But Datastream Systems' directors rejected two purchase offers and refused to negotiate.

"It was a 'nice to have' for us, not a pillar in the strategic platform,'' Drapeau told Reuters. "It would take too long and would be too distracting" to have pursued a hostile bid, he said in late February.

Greenville, S.C.-based Datastream Systems said it wants to remain independent, despite recent steep losses. MRO Software offered $6 per share in December, which consisted of $1 in cash and $5 in MRO Software common stock.

MRO Software is best known for its MAXIMO® software, which helps manufacturing plants plan and track MRO items. The firm says those capabilities result in improved equipment uptime, better maintenance planning and scheduling, and reduced costs. Datastream Systems is known for Datastream 7i, its enterprise asset management software and its iProcure integrated procurement network.

Datastream recently announced a large contract with Genzyme and an alliance with GE Fanuc Automation North America, Inc. Datastream 7i will enable Genzyme to manage its manufacturing, utility and support equipment and provide the company a tool to comply with government electronic record-keeping and electronic signature regulations. Datastream and GE Fanuc Automation will jointly offer asset lifecycle management solutions.