California Software Deal Falls Through

California Software Corp.’s slumping stock price has torpedoed the company’s plans to acquire MAI Systems Corp.’s Hospitality Information Systems unit.

The Irvine companies said Wednesday they agreed to terminate the deal after California Software’s stock fell below $7 a share in over-the-counter trading. Under the tentative deal, the companies could terminate the purchase if California Software’s stock traded below $7 or above $10 a share.

California Software, a software systems company, had agreed to issue about $26.8 million of new convertible stock and assume $9.5 million in MAI debt in the transaction.

California Software said it plans to obtain an American Stock Exchange listing before seeking additional acquisition candidates. The stock closed Wednesday at $5.13, off 13 cents a share.