Techcrunch is reporting that Corel has been acquired by private equity giant KKR for over $1 billion. The publication cites multiple sources and states that the acquisition has been confirmed.
“We now have a copy of the memo provided by an internal source that has been sent out to staff announcing that the deal has indeed closed, and that Corel is now officially part of the KKR family of companies,” Techcrunch claims. “KKR is very optimistic about Corel’s prospects. It plans to give Corel an ‘infusion of capital’ to accelerate its growth, which will go into two areas, … expanding operations for the existing business [and] making acquisitions.”
Most famous for its CorelDRAW Graphics Suite, Corel owns a surprisingly vast range of software assets that also includes WordPerfect, WinZip, PaintShop Pro, and many others. Corel in December confirmed that it had acquired virtualization pioneer Parallels for an undisclosed sum.
Corel’s previous primary owner, Vector, has described the privately-held firm as “highly profitable,” and the firm is known to have “millions” of customers. Unlike many of its contemporaries from the 1980s, Corel has also succeeded simply by surviving. It was once positioned as the primary office productivity alternative to Microsoft Office.
The deal is likely a rich one for Vector. The firm initially paid $124 million for Corel and then paid $30 million to take it private in 2010.
Expect an official announcement on Wednesday.
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