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Corel acquisition by Vector approved by Ontario court

Ontario’s Superior Court of Justice has approved the acquisition of Corel Corp. by Vector Capital.

“I am satisfied the arrangement is fair and reasonable and in the best interests of Corel’s shareholders,” said Justice James Chadwick during Friday’s ruling.

The approval means Corel will become a private company, and shareholders will receive US$124 for the deal, or US$1.05 per share.

James Baillie, chairman of Corel’s board of directors said today in a statement that he believes the acquisition by Vector will enable Corel to reach its full potential.

On Wednesday, 81 per cent of Corel’s shareholders voted in favour of the acquisition, despite a movement by a group called Corel Rescue to thwart the takeover bid. Excluding the shares owned by Vector, 73 per cent of votes in favour were cast by common shareholders. [Please see Corel acquisition by Vector opposed by stockholder group, and Corel shareholders vote if favour of Vector acquisition.] The acquisition is expected to close Aug. 25.

“We were particularly impressed with the level of support for Vector among the employees of Corel and see that as an important basis for working together with management to help Corel capitalize on the opportunities ahead,” Alex Slusky, managing partner of Vector, said Friday in a statement.

Vector is based in San Francisco and is online at www.vectorcapital.com. For more information about Corel, visit www.corel.com.

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