BUSINESS

The Canadian company Corel sold for $1 billion

The Canadian company Corel passed into the ownership of the American investment group (Kohlberg Kravis Roberts) KKR. The new owners purchased it together with all assets, including the developed software and staff. KKR first announced its plans to purchase Corel in May 2019, but at that moment the proposed for the company disclosed the amount was not, although, according to the publication Pe Hub, it could make in the area of $1 billion.

The aggregate amount at which the agreed, too, is kept in secret. However, the sources of the resource TechCrunch confirm that Corel was sold for $1 billion. The representatives of the KKR and Corel at the time of publication of material from the comments on the terms of the deal have refused. KKR capture also and all companies acquired Corel since its inception.

This touches and the IT company with Russian roots Parallels, which specializes in the development of virtual machines. Corel bought it in December 2018, but the amount of the deal call refused. The payment was made in cash, participants came out of the transactions without a large profit.

Corel had intended to invest in the Parallels significant means to consolidate clients, partners, and brands of both companies, thus creating new opportunities for growth. Under these opportunities understood, in particular, more close integration of already existing product companies.

corel

At the time of the conclusion of the transaction is not reported any dismissals in the company so that all employees in the amount of approximately 500 (official statistics for 2015) can save their jobs. Investment group KKR was founded in 1976 for the 43 years of its existence, it has reported more than 150 acquisitions totaling in the region of $345 billion.

The investment group owns the companies from different business areas.

For example, in 2014, KKR acquired the largest in China chicken farm Fujian Sunner Development, paying for the $400 million, and on February 2019, she became the owner of the German media Tele München Gruppe, founded in 1970 in the list of the assets of Corel is composed of at least 15 software products of own development, most of them in one way or another, related to the graphics.

These include the vector graphics editor CorelDraw, program for digital painting and drawing Corel Painter, bitmap graphics editor Corel Photo-Paint and even its own Linux distro – Corel Linux OS. Development of the last was discontinued in 2000, in addition to the projects developed by Corel directly, the company owned and third-party developers, it acquired in different years.

This includes a text editor of WordPerfect, WinDVD media player, WinZip archiver, as well as for video editing Pinnacle Studio.

As of July 3, 2019, it is unknown which of the projects, Corel will have a chance for further development, and which will be frozen or even closed. In the meantime, the representatives of the KKR noted that Corel will continue to buy software developers – large companies and budding startups.

The plans for the nearest acquisitions staff of KKR to disclose.

Corel was founded in Canada in 1985, Michael Copeland (Michael Cowpland), who called his company in honor of themselves (Corel stands for “Cowpland Research Laboratory”). Four years later, in 1989, the company released the first version of its graphics editor CorelDraw, who became its flagship product. History With the acquisitions of third party companies began in 1996 with the purchase of a text editor for WordPerfect by Novell.

corel

Corel has sought to compete with Microsoft with its editor of the Word, but the latter was the winner – it takes significantly more popularity. In June 2000, Corel has left its founder. Michael Copeland served at the same time, President, Chief Executive Officer and Chairman of the Board of Directors of the company. In June 2003, Corel has passed into the possession of the American investment Venture Capital, bought it for $53 million.

It is Venture Capital participated in the negotiations with the KKR on the sale of Corel. Once the property of the Venture Capital made a number of major acquisitions. In particular, in 2005 she bought the archiver WinZip, competing with WinRar, in 2012, purchased from Avid Technology Video Editor Pinnacle Studio, and in 2016 captured the commercial software for work with the charts links MindManager, developed by Mindjet.

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Timothy Hill

My name is Timothy, I am a financial blogger who keeps up with all the new trends in the world of business, stock market, and industry growth, I hope you enjoy my articles.

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