Ottawa-based Allen-Vanguard Corp. said Monday its deal to be acquired by Tailwind Financial Inc. has been terminated.

The firms did not reveal why the takeover was scrapped.

In late January, Tailwind agreed to buy Allen-Vanguard in a stock deal valued at $35 million US.

Allen-Vanguard, which makes roadside bomb countermeasures systems and other military hardware, also said it has entered into a three-week period of exclusive talks with another potential investor from the United States.

In light of the deal being called off, Tailwind said it will liquidate and cease operations.