Software house MCS has been taken off the market after being on offer for around £10m earlier this year, Insurance Times understands.
The company, with an annual turnover of £6m, has a strong client list including brokers Alexander Forbes, Windsor, SBJ and HSBC.
MCS general manager James Sharp admitted the company was seeking to be acquired "some time ago", but claimed it had since changed tack.
Sharp said of the latest development: "It is something we dallied with and, in the end, we decided we did not want to do. That statement [that MCS is up for sale] is no longer true and somebody is being mischievous.
"There will be further consolidation in software houses, but we have a dominant product and we want to dominate whatever goes on. We are not about to sell to any of our competitors."
MCS has its Windows-based system, Sector 7, installed on 1,250 workstations across brokerages nationally with its operations split into two divisions: broking systems and plant hire.
MCS has two key shareholders, Bernie Conlon and Richard van der Knapp, both of whom hold a 42% stake.
Sharp said MCS had ended its link with Regent Associates, the firm it originally appointed to handle its sale.