Montreal’s Discreet Logic and MGI Software of Toronto have terminated their agreement to merge. As part of the breakup, Discreet will assume us$450,000 of mgi’s costs in connection with the arrangement agreement entered into on March 9.

In a separate but seemingly related development, a feasibility study will be conducted by mgi on the adaptability of Discreet’s technology to the consumer marketplace. Discreet will fund the study at a cost of us$300,000.

mgi develops software mostly for the consumer market while Discreet’s products are generally aimed at the professional marketplace.