KKR buys Corel for more than a billion dollars

KKR buys Corel for more than a billion dollars

The acquisition of Corel by the KKR it would have been made official by the leaders of the two groups after a few weeks characterized by rumors about it. The well-known international private equity firm would have offered over $ 1 billion to take control of the Ottawa-based Canadian software house.

Corel has a customer portfolio consisting of over 90 million units scattered around the world, ranging from companies to graphics professionals and the consumer segment. In turn, last December the company had become the owner of Parallels, one of the most used solutions for software virtualization in the MacOS environment.

Despite the various successes of CEO Patrick Nichols, including the launch of the CorelDRAW Graphic Suite 2019 for the platforms of Apple happened last March, the transfer of ownership to KKR could be the indicator of forecasts not particularly optimistic from the financial point of view.

KKR deals with leveraged buyout, that is the acquisition of companies at risk of indebtedness. More precisely, the LBO plans to exploit the borrowing capacity of the acquired organization, the purchase value is largely covered by recourse to the debt which is subsequently recovered based on the cash flows.

Corel's (Cowpland Research Laboratory) remains a historical name in the high tech area, founded in 1985 saw its business grow until the mid-90s when it suffered from the confrontation with Microsoft. A Corel must then Draw, one of the few alternatives recognized to the standard for graphics and photo editing embodied by Photoshop.

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