Vector Capital Group Thursday concluded the acquisition of Ottawa-based Corel
The San Francisco-based venture capital firm, which specializes in “special
opportunity investments” in software and IT services, will acquire all of
the common shares of Corel for $1.05 per share, and Corel said its shares
ceased trading when the NASDAQ closed on Thursday. Shares on the TSX are
expected to cease trading on Tuesday.
“This is an exciting day for Corel as we begin a new chapter in the
company’s history,” said Derek Burney, president and CEO of Corel. “Vector
is a committed and enthusiastic partner who will work with Corel to build
customer relationships and capitalize on teh company’s poetntial. 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.”
On Friday, an Ontario court granted approval of the acquisition following a
shareholde
r vote approving the
deal. A dissident shareholder group made an eleventh
hour attempt to block the deal, but failed to do so.
In a statement released late Friday, Corel quoted Canadian Justice James
Chadwick
said: “I am satisfied that the applicants have complied with all of the
terms of the interim
order and also the provision of the Canada Business Corp. Act and the
Ontario Business
Corporations Act.”
From initial public indications, the newly-reorganized Corel will
concentrate on new versions
of its WordPerfect word processing and CorelDraw graphics software
packages,
but whether
there will be job cuts, or product reductions is less clear.
“Our goal remains to be on profitability and will make decisions required
to
achieve that
goal,” Vis said, not ruling out the possibility of job cuts. She also said
from all indications
Vector intends to stay with the current top management of Corel.
What is less clear, is what course the newly-private company will take in
regards to its software
product mix.
Greg Wood, a spokesman for Corel’s WordPerfect division said research is
ongoing on whether to
devote resources to creating future Linux-versions of its WordPerfect
software.
“We are prepping the next version of WordPerfect and reviewing exactly
which
operating systems
it will run on. Our big push is behind WordPerfect 11,” Wood said.
Neither Vis, nor Wood would commit to precise release dates for the next
version of WordPerfect,
Corel Draw, or other software product release plans.
Alex Slusky, managing partner at Vector Capital, said “We are pleased to
complete this transaction and consummate a union which will benefit Corel
and its customers. We are committed to working with Corel’s dedicated
employees to provide the highest quality software and services to our
diverse base of partners and customers worldwide.”
