Corel Buys DVD Apps Maker InterVideo For $196M
Corel said Monday that it will acquire multimedia software provider InterVideo for about $196 million.
The deal will also include InterVideo's majority interest in Ulead, tying the WinDVD, Ulead Photo Impact, Ulead VideoStudio, Ulead DVD Movie Factory, and Corel Paint Shop Pro brands together under one owner.
The acquisition is subject to InterVideo shareholder approval, regulatory approvals, and other customary closing conditions, the two companies said. Intervideo's directors have signed voting agreements approving the merger. The transaction is expected to close in the fourth quarter of 2006 and to be accretive in the second quarter after closing.
By acquiring InterVideo, Corel is delivering on its strategy to accelerate revenue and earnings growth by acquiring complementary companies and technologies that will benefit from Corel's global sales, marketing, and distribution capabilities, Corel said. Intervideo also gives Corel access to the Asian market through its Asian sales channels an Asian development sites.
The acquisition will be financed through a combination of Corel's cash reserves, debt financing, and InterVideo's cash and cash equivalents which stood at approximately $105 million as of June 30, 2006, the companies said.
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