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Wednesday, April 05, 2006
Corel plans IPO
Edited April 9, 2006 (see below).
The big news this week is Corel's filing of IPO plans in the U.S. and Canada.
Globe and Mail: Corel plans IPO:
Corel said it plans to sell eight million shares at $18 to $20 each, which would value the company at more than twice what Vector Capital Corp., a San Francisco-based venture capital firm, paid for it less than three years ago.
In filings with U.S. and Canadian regulators Tuesday, Corel said it would use most of the proceeds, plus a new $90-million loan, to repay $140.1-million of existing debt. About $28-million would go into the coffers for general purposes, including acquisitions.
See also, Ottawa Business Journal: In Corel's own words.
Looking at the official filing (F-1) with the SEC, reveals lots of interesting information, including:
Our WordPerfect Suite, which accounted for approximately 37.3% and 24.0% of our total revenues in fiscal 2004 and 2005, respectively, competes with Microsoft Office which has in excess of 97.0% of the North American market for office suite software. In addition, our graphics and digital imaging products, which accounted for approximately 55.4% and 58.8% of our total revenues in fiscal 2004 and 2005, respectively, compete with similar products offered by Adobe, which, after giving effect to Adobe’s acquisition of Macromedia, has in excess of 70.0% of the global packaged graphics and digital imaging software market in which we compete.
Maybe I'm just so focused on WordPerfect, but I was surprised that their graphics products bring more revenue than WordPerfect. Of course, I'm no analyst. I just wanted to note the figures here for future reference.
EDITED on April 9, 2006, to add: Former Corel top gun, Michael Cowpland, has some things to say about the filing:
You have to wonder why they bothered going private. It forced shareholders out unnecessarily, because there was all that cash in the bank in the first place. It seems that that was an unnecessary step for them, but it seems to have worked out successfully for them in the end.
Link: Canadian Technology News
• Posted by: Marie Carnes at 11:42 PM
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