Takeover talks between an identity verification specialist and a Chicago-based private equity firm have ended.
Chester-based GB Group (GBG) said an "agreement could not be reached on terms" with GTCR.
The announcement, which saw shares in the company drop by 20%, comes after talks were first revealed towards the start of September.
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GBG employs around 1,200 people and works with the likes of Volvo, HSBC, eBay, John Lewis, ASOS, Lego, Santander and IBM.
When the potential takeover was first reported, shares in the group jumped from 522p to to 647p. As of 3.30pm on Tuesday, October 4, they are trading at 493p.
In a statement issued to the London Stock Exchange, GB Group said: "GBG notes the statement by GTCR LLC that it is no longer evaluating a possible offer for GBG and that it is consequently bound by the restrictions under Rule 2.8 of the City Code on takeovers and mergers.
"GTCR first announced it was considering a possible cash offer for the company on 6 September 2022, in response to media speculation.
"The GBG board had early-stage discussions with GTCR in respect of a possible offer for the company, but agreement could not be reached on terms.
"The board of GBG believes the company has a long runway of sustainable growth opportunities underpinned by supportive structural drivers such as digitalisation and an ever-increasing need to protect against fraud.
"The wide-ranging capabilities GBG has developed and acquired over recent years give it a leadership position in the identity verification and fraud markets and reinforce its position as one of the largest pure-play identity software solution providers globally.
"GBG is focused on achieving its strategic and financial objectives in FY23 and beyond, and the board believes the delivery of these objectives will create significant value for GBG's shareholders over time."
Analysts at Panmure Gordon have said they still see GBG as an "attractive entry point for one of the UK's best software assets".
They added that in the absence of a sale, "current holders will benefit from the anticipated acceleration/ expansion of growth and margins".
They also said a trade sale to one of the credit bureaus, such as Experian or Equifax, or a data aggregator like RELX, "would arguably make more sense" than a sale to a private equity firm.
Panmure Gordon said: "In our view, a trade sale would lead to more significant cost and growth synergies than an exit to PE.
"For example, whilst both categories would eliminate PLC costs, a trade buyer could probably merge some of GBG's sales and marketing and/or R&D functions with its pre-existing capabilities, whilst also providing cross-sell opportunities for the extended product portfolio."
The firm added: "We believe GBG is one of the UK's best software businesses. Via a combination of organic growth and M&A, it has forged an enviable position as one of the world's largest pure-pay identity software solution providers.
"We think the business is highly likely to enjoy organic growth rates of 10%+ for the next 10 years.
"Moreover, we think both growth and margins are set to improve materially as the integration of Acuant nears completion and the revenue base becomes ever more weighted towards the high-growth US market."
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