Ottawa based software maker Corel Corp. said Monday that it has signed a deal to buy Fremont, California based InterVideo, which produces digital video and audio software, for $13 US per share or $196 million US in cash. On Nasdaq, shares of InterVideo shot up almost 32 per cent to finish at $12.64 US. Corel gained six cents, closing at $11.08 on the TSX.
Corel said the acquisition would give it the industrys broadest portfolio of digital media software including photo sharing and image editing products, high-definition DVD creation and playback software. It also said the deal would give it strength in Asian markets, including China, Taiwan and Japan, which the company said it has marked for expansion.
Corel, which was taken private in 2003 by San Francisco-based Vector Capital, returned as a publicly traded company in late April 2006.
News source: CBC News