Ottawa-based software firm Corel Corp. has announced that it has been acquired by KKR & Co. Inc., a global investment firm, for reportedly over $1 billion USD, although the sale price has not been confirmed by either party.
Corel had previously been owned by Vector Capital, a technology-focused private equity firm, which bought Corel in 2003.
Founded in 1985 by Michael Cowpland, Corel is known for its graphics and office productivity programs such as CorelDRAW, ClearSlide, MindManager, Parallels, and WinZip, and has been reported to have over 900 million users across all of its offerings.
Corel has made some acquisitions of its own, including the purchase of Parallels in December 2018, which has led to significant growth, something that a representative from KKR said drew them to Corel. And according to an internal memo recovered by TechCrunch, KKR plans to support Corel in any future acquisitions of its own.
“Corel has differentiated itself by offering an impressive portfolio of essential tools and services for connected knowledge workers – across devices, operating systems, and a range of fast-growing industries. KKR looks forward to working together with management to drive continued growth across its existing platforms while leveraging the team’s extensive experience in M&A to deliver a new chapter of innovation and growth on a global scale,” said John Park, member at KKR, in a press release.
According to the memo recovered by TechCrunch, CEO Patrick Nichols told staff that the acquisition will not cause any layoffs and will lead to a significant injection of capital into the country.
“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. With KKR’s support and shared vision, our management team is excited by the opportunities ahead for our company, products, and users,” said Nichols.