Corel has signed an agreement to acquire InterVideo, a leading provider of multimedia DVD software, in an all-cash transaction at a price of $US13 per share or approximately $US196 million, according to a report from PMA International.

 

August 30, 2006: Corel has signed an agreement to acquire InterVideo, a leading provider of multimedia DVD software, in an all-cash transaction at a price of $US13 per share or approximately $US196 million, according to a report from PMA International.
InterVideo, which holds a majority interest in Ulead, has developed a comprehensive suite of advanced digital video and multimedia software products that allow users to record, edit, author, distribute and play digital multimedia content on PCs and other devices. The acquisition will complement Corel’s existing product portfolio, which includes Paint Shop Pro, CorelDraw, Painter, Photo Album and Word Perfect. It will also provide Corel with a stronger base for expansion into Asian markets such as China, Taiwan and Japan, where InterVideo products are already popular.

 

The acquisition is subject to InterVideo shareholder approval, regulatory approvals and other customary conditions. The transaction is expected to close in the fourth quarter of 2006 and to be accretive in the second quarter after closing.