Months after acquiring Seattle-based desktop virtualization company Parallels, Canadian software company Corel has now been acquired itself.
The New York-based global investment equity firm KKR recently announced that it had acquired the company from Vector Capital. Although terms of the deal were not disclosed, early reports from TechCrunch and others valued the deal at over $1bn.
Corel CEO Patrick Nichols praised the deal in a press release, explaining that it would provide new opportunities for the company and its customers:
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“KKR recognizes the value of our people and their impressive achievements, especially in terms of our commitment to customers, technology innovation, and our highly successful acquisition strategy.," he said.
"With KKR’s support and shared vision, our management team is excited by the opportunities ahead for our company, products, and users.”
Corel acquisition
While neither Corel nor its former owner Vector have publicly disclosed the software company's financials or user numbers, Vector has said that the company is “highly profitable” with dividends of over $300m to date.
According to an internal memo obtained by TechCrunch, Corel (and the recently acquired Parallels) has millions of customers across its various software platforms and apps.
Additionally, an internal email from Nichols has revealed that there will be no layoffs as a result of the KKR deal.
The founder and chief investment officer of Corel's former owner Vector Capital, Alex Slusky explained how Corel improved under its ownership and that it is in good hands with KKR, saying:
“Corel has been an important part of the Vector Capital family for many years and we are pleased to have achieved a fantastic outcome for our investors with the sale to KKR. Under Vector’s ownership, Corel completed multiple transformative acquisitions, grew revenue and meaningfully improved profitability, highlighting Vector’s proven strategy of partnering with management teams to position companies for long-term success. We are confident the company has found a great partner with KKR and wish them continued success together.”
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