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
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
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.