The news
Following on from its acquisition of JASC and its popular PaintShop Pro program last year and the ubiquitous WinZip this spring, Corel is getting set to buy InterVideo - which itself took over Ulead only in 2005.
The deal, an all-cash transaction said to be worth around US$196 million, delivers into Corel's hands a route into the Asian market and a bunch of ready-made solutions for the playback and authoring of Blu-ray Disc and HD DVD next-generation high-def DVDs - just at a time when things are warming up.
The acquisition is said to be subject to "InterVideo shareholder approval, regulatory approvals and other customary closing conditions".
It will, seemingly, be financed through a combination of Corel's cash reserves, debt financing, and - perhaps a little surprisingly - InterVideo's cash and cash equivalents, which are said to have stood at around $105 million on June 30.
If everything goes according to plan, the transaction should close in the fourth quarter of 2006. When that happens, Corel's product line-up will include WinDVD, WinDVD Creator, Ulead Photo Impact, Ulead VideoStudio and Ulead DVD Movie Factory, along with Paint Shop Pro and WinZip (free upgrades came to an end already with V10 - boo!), plus CorelDRAW X3, Corel Painter IX.5, Corel WordPerfect Office 3 and a few more besides.
Check out Corel's press release on page two, then share your thoughts about the company's latest takeover in this thread in the HEXUS.lifestyle.news forum.
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