RealTime IT News

Corel and Inprise-Borland End Merger Bid

Independent Software Vendor Corel Corp. Tuesday terminated its merger agreement with application developer Inprise/Borland Corp. citing significant changes in the company's stock value since the original deal was struck three months ago.

The deal has been undone by mutual agreement of the two companies without incurring any termination fees. Reciprocal stock option agreements have also been terminated.

In anticipation of the merger agreement, Corel and Inprise/Borland entered into a confidentiality agreement that included a standard three-year standstill covenant and that portion of the contract remains in effect.

Corel concluded that it is in its best interest to terminate the agreement at this time because of stock market instability since the merger was proposed. Corel and Inprise/Borland report that they are parting on amicable terms and will continue to pursue opportunities for ongoing partnerships.

Dr. Michael Cowpland, Corel president and chief executive officer, said although the company is disappointed that the merger didn't proceed as planned, it hasn't changed Corel's strategic focus.

"Together with our industry partners, we will continue to deliver open-standard, cross-compatible, multiple-platform solutions that will increasingly leverage the power of the Web," Cowpland said.

With the termination of the merger agreement, Corel is now able to fully evaluate offers of alternative financing it has recently received.

Dale Fuller, Inprise/Borland interim president and chief executive officer, said much has changed since the merger was agreed to more than three months ago.

"Our board concluded that it would be best to cancel the merger on an amicable basis," Fuller said. "Inprise/Borland is well positioned today with improving operating results and substantial liquid assets. Future operations will continue to follow our successful strategy of creating solutions that enable companies to move their businesses to the Internet."

Corel is a recognized software developer of award-winning business productivity, graphics and system solutions operating on Windows, Linux, UNIX, Macintosh and Java platforms. Corel also develops Web-based solutions including applications, content, e-commerce, and online services.