Vector Set to Acquire Corel

Struggling Canadian software firm Corel Corp. on Thursday indicated that it was about to be acquired by San Francisco's Vector Capital Corp.

In March, Corel admitted that it was actively trying to find a buyer for its business and had signed a non-disclosure and standstill agreement with Vector Capital that let Vector investigate a takeover bid.

On Thursday, Corel said the negotiations with Vector Capital were continuing for a potential transaction for the acquisition of the company. Under the existing agreement between the two firms, Vector Capital has the contractual right to make an offer to Corel's shareholders to purchase all common shares at a price of $1.10, but the deal appears likely to be struck below that price.

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