Virtualization News Desk
Cloud Computing Journal - Corel May Get Sold
In Talks with An Unidentified Third Party Regarding A Potential Sale of the Company - No Agreement Has Been Made Yet
Aug. 22, 2008 05:30 PM
Corel may get sold.
It said late Wednesday night that it is in talks with an unidentified third party regarding a potential sale of the company, but that there’s no agreement yet or even the assurance of an agreement.
The statement followed a Reuters report that Corel had received “multiple preliminary offers from private equity firms and strategic buyers” late Wednesday afternoon.
The private equity firm that owns 69% of Corel, the Canadian company that shifts WordPerfect, withdrew its offer to buy the rest of the company for $11 a share so Corel can pursue other “alternatives for maximizing value for all of Corel’s shareholders” that a special Corel board committee turned up while evaluating the buyout proposal.
The $11 offer, made at the end of March, only represented a 3% premium at the time and valued the whole company at roughly $282 million.
Vector Capital, the company’s majority owner, took Corel private in 2003 for $120 million. It went public again in 2006 raising $104 million.
In July Corel reported a 60% drop in earnings to $930,000, four cents a share, on revenues up a little bit to $67 million.
About Maureen O'GaraMaureen O'Gara is the Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.