German medical software company CompuGroup approached Agfa in October to indicate its interest in a potential acquisition.

The following month Agfa’s board of directors decided to engage in “non-exclusive discussions” with CompuGroup, taking into account the interests of its shareholders and other stakeholders.

In a statement released today (2 December) Agfa said: “Agfa and CompuGroup have reached an understanding today to not further pursue the discussions about the contemplated public takeover bid.”

The statement did not give a reason for the talks drawing to a close. In October, after the potential takeover was first mooted, Belgian financial paper De Tijd highlighted Agfa's €1.1bn pension liability as one of the major potential stumbling blocks to a deal.

Agfa’s share price fell by 20% following the announcement, down by €0.84 to €3.35 in early trading, though it has since risen to €3.46 at the time of writing.

Last month, Agfa released its Q3 results to 30 September 2016. Its group sales fell 5.4% year-on-year to €625m (£527m) but EBITDA rose 5% to €63m, which was largely attributed to efficiency improvements and favourable raw material prices.