On July 3, 2019, KKR, one of the world's leading investment firms, announced the completion of the acquisition of Corel Corporation. Along with it, all software products and assets were transferred to the buyer.
It became known in May 2019 that KKR planned to acquire Corel. The final deal amount is not disclosed.
After closing the deal, KKR will gain access to all assets previously acquired by Corel, including the company Parallels, which is well-known for its software that allows Windows applications to run on Mac without rebooting. KKR's software portfolio now includes the entire range of Parallels products, including Parallels Desktop for Mac, Parallels Toolbox for Windows and Mac, Parallels Access, Parallels Mac Management for Microsoft SCCM, as well as Parallels Remote Application Server (RAS).
The financial details of the deal are not disclosed.
Parallels was founded in 1999 and is headquartered in Bellevue, Washington. Parallels is a global leader in the development of cross-platform solutions.
Corel Corporation, founded in the 1980s in Ottawa, Canada, occupies a unique position at the intersection of several major and rapidly growing markets, with a total value of nearly $25 billion across key verticals, offering a wide portfolio of software solutions that empower more than 90 million knowledge workers worldwide.
Corel has a rich history of acquisitions, the most recent of which include the purchase of Parallels, ClearSlide, and MindManager. Corel's assets include at least 15 software products of its own development, most of which are related to graphics in one way or another. These include the vector graphics editor CorelDraw, the digital painting and drawing application Corel Painter, the raster graphics editor Corel Photo-Paint, and even its own Linux distribution – Corel Linux OS. In addition to products developed directly by Corel, the company also owns software from third-party developers acquired over the years. This includes the WordPerfect text editor, the WinDVD media player, the WinZip archiver, and video editing software Pinnacle Studio. The number of third-party software products owned by Corel exceeds 15.
"Corel has achieved a unique market positioning by continuously expanding its impressive portfolio of IT solutions. KKR eagerly looks forward to working with Corel's management to drive further business growth, leveraging the extensive experience of the team in mergers and acquisitions to start a new chapter of innovation and growth on a truly global scale," said John Park, a member of the KKR Board.
"KKR recognizes the value of our employees and their impressive achievements, particularly with respect to our client work, technological innovation, and the successful execution of our acquisition strategy of other companies. With the support of KKR and a shared vision, our company, products, and users are presented with exciting new opportunities," stated Patrick Nichols, CEO of Corel.
"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," commented Alex Slusky, Founder and Chief Investment Officer of Vector Capital. During this time, Corel has completed several transformational acquisitions, increased revenue, and significantly improved profitability. We are confident that Corel has found a worthy partner in KKR and wish them further success together.
For KKR, the investments in Corel are primarily made from the KKR Americas XII Fund.
Corel and Vector Capital were represented by Sidley Austin LLP in this transaction, while Kirkland & Ellis LLP and Deloitte represented KKR.
The investment group KKR was founded in 1976. Over its 43 years of existence, it has reported more than 150 acquisitions, with a total value of around $345 billion. The group owns companies across various business sectors. In 2014, KKR acquired China's largest chicken farm, Fujian Sunner Development, for $400 million, and in February 2019, it became the owner of the German media company Tele München Gruppe, founded in 1970.
KKR representatives noted that the investment group will continue to develop the strategy proposed by Corel — to acquire promising software companies and leverage their assets.
Source: habr.com
