Vector Capital Buys Corel

 
 
By Peter Galli  |  Posted 2003-08-28 Print this article Print
 
 
 
 
 
 
 
San Francisco-based Vector Capital Group has successfully acquired Canadian software maker Corel Corp., the companies said on Thursday. This means that Vector Capital, a venture capital and private equity firm, will acquire all the common shares of Corel for U.S. $1.05 a share. Corels securities should cease trading on the Nasdaq by the close of markets today and by the end of the trading day next Tuesday on the TSX. Derek Burney, the CEO of Corel, said the deal marks the beginning of a new chapter for the company. "We look forward to a successful future for Corel as we devote even greater focus and energy to delivering productive software solutions to our customers and partners worldwide," he said.
Alex Slusky, the managing partner at Vector Capital, said the deal will benefit Corel and its customers. "We are committed to working with Corels dedicated employees to provide the highest quality software and services to our diverse base of partners and customers worldwide," he said.
In March, Corel admitted that it was actively trying to find a buyer for its business and that it had signed a non-disclosure and stand-still agreement with Vector Capital that let Vector investigate a takeover bid. The two companies then said in June that under a Plan of Arrangement, still to be court- and shareholder-approved, Corel shareholders would get $1.05 in cash for each common share held. This would include "all common shares which may become outstanding on the exercise of options, warrants and other securities exercisable for, convertible into or exchangeable for common shares. Upon the completion of the arrangement, Vector and its affiliates will own all of the out-standing shares of Corel," the companies said. The $1.05-a-share price is slightly less than the $1.10 minimum that Corels board in March said it would recommend shareholders accept from Vector Capital. The March deal also forbade Vector from making a formal takeover bid for a price of less than $1.00 a share over the next six months. On the product front, Corel recently released WordPerfect Office 11, which gives users the ability to publish slideshows, spreadsheets and WordPerfect files to XML; enhance existing file-sharing options; and support the deployment of content to multiple devices. Last year, both Hewlett-Packard Co. and Dell Corp. agreed to offer Corels word processing package and spreadsheet application, Quattro Pro 10, with some of their computer lines. Earlier in the year, Sony Corp. also agreed to ship Corels WordPerfect on a range of its PCs, from budget to high-end machines.
 
 
 
 
Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at www.eweek.com.

 
 
 
 
 
 
 

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