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August 28, 2006 6:58 AM PDT
Corel to acquire InterVideo
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Desktop software manufacturer Corel Corporation, best-known for Windows offerings such as WordPerfect and Paint Shop Pro, has signed an agreement to purchase multimedia company InterVideo. The acquisition, which is valued at an estimated $196 million, will give Corel access to InterVideo's products--such as DVD player software WinDVD--as well as those from photo and video editing start-up Ulead Systems, in which InterVideo has had a majority interest since 2005.
Corel, which had a lackluster IPO earlier this year, has struggled as its WordPerfect suite has lost ground to Microsoft Office and Apple's iWork. Consequently, the software company has sought to carve out a niche in the small-business market, promoting WordPerfect as a low-cost alternative to the pricier Office.
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