Corel has agreed to acquire US-based graphics software developer Micrografx in an all-stock transaction valued at $32 million (around £22 million), the companies said Monday.
Known primarily for its graphics software, Corel has spent the past few years battling management changes, layoffs, quarterly losses and a murky business strategy. In January, the company unveiled a new strategy and said it would spin off its Linux division and refocus on its graphics products.
Corel said at the time that its priorities include extending its graphics software to meet the needs of Web developers. This week, Corel said the Micrografx acquisition will further that goal.
Corel cited Micrografx's leadership in the technical illustration market, which it serves with its Micrografx Designer 9 package, as an attractive asset. Corel also said it will devote additional resources to Micrografx's Enterprise Process Management division, which develops software tools for graphical modeling and simulation of business processes and projects.
Few other details on how the companies will be integrated were immediately available. Representatives of Corel did not return calls seeking comment. Corel and Micrografx said in a statement that their executives will be working together over the next several weeks on an integration plan, which will be announced after the deal closes. The deal is expected to close during Corel's fourth quarter, ending November 30, pending regulatory approvals and the approval of Micrografx's shareholders.