El Segundo-based Peerless Systems said today that it is in a definitive agreement to buy Prism Software, a firm which develops document management software. According to Peerless, it will pay $1.75M in cash, plus up to $1.5M in Peerless common stock dependent on certain conditions. The deal also includes additional earn out over three years. Prism Software is based in Irvine, and develops software used to manage document flow, document creation and distribution. Prism's management team will join Peerless as part of the acquisition.