Pegasus Solutions, Inc.
(Nasdaq: PEGS) disclosed that it no longer intends to make an offer to the shareholders of HARS Systems Inc. (“HARS”) (CDNX: HSS) to purchase all outstanding common shares of HARS.

Headquartered in Calgary, Canada, HARS provides reservation distribution services through its wholly owned subsidiary, VIP International Corp. Pegasus Solutions is a leading provider of technology services to the hotel industry.

Predicated by Canadian disclosure requirements, on May 17, 2002, Pegasus announced it had initiated efforts to acquire HARS at a cash price of $0.62 CAD per share. On May 24, 2002, Trimin Capital Corporation announced a competitive bid, increasing its offer to acquire all outstanding HARS shares. In response, Pegasus announced today that it has withdrawn its intent to continue in the bidding process.

Commenting on Pegasus` decision to no longer pursue a potential acquisition of HARS, Pegasus Solutions Chief Executive Officer and Chairman of the Board John F. Davis, III said, “At our original offer price, HARS and its VIP subsidiary was an attractive acquisition target, but the competing bid and our further analysis of HARS` business fundamentals led us to the conclusion that we could not justify offering a higher bid to top Trimin`s new offer. However, we will continue to stay focused on finding and carefully analyzing appropriate acquisition candidates to supplement Pegasus` continued growth.”

Related stories on ITN:

(20/05/2002) Pegasus Solutions Sets Sights on HARS

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