Pending regulatory and shareholder approval, it appears that
is headed for a buyout by Vector Capital Corp. The companies announced plans to enter into a definitive agreement to acquire all the outstanding common shares of Corel stock. If approved, Corel would become a private company, no longer listed on public stock exchanges.
Corel develops office productivity, XML, creative and other software. Their Mac portfolio focuses on creative products including CorelDRAW Graphics Suite, Corel KPT Collection, Corel KnockOut 2 and Corel Painter. The Ottawa, Canada-based publisher recently
confirmed with MacCentral
that it was discontinuing Mac development of Bryce, its 3D landscape and animation tool.
Subject to the conditions of closing, Corel’s shareholders will get US$1.05 in cash for each common share held. Corel Chairman James Baillie said that this represents a 42 percent premium in the value of Corel’s stock prior to the announcement. He added that the company’s financial advisor, CIBC World Markets Inc., considers Vector’s offer “fair from a financial point of view.”
Vector Capital managing partner Alex Slusky indicated that his company’s offer is “Corel’s best opportunity moving forward.”
“This all-cash transaction offers Corel’s shareholders an attractive premium and relieves them of market and operating risk going forward. Without the costs and distractions of the public market, Corel’s dedicated employees can focus on what they do best — delivering the highest quality software products to a diverse global customer base,” said Slusky.
Corel anticipates that the deal will be completed by the end of July, pending approval.