By Suzanna Kerridge, 17 July 2001 14:09
NEWS Canadian software vendor Corel's race to health continues as the company adds Micrografix to its portfolio.
The $32m stock for stock transaction deal will boost Corel's position in the graphics market and its ability to build web-based services.
However, the deal will also catapult Corel into the process management market as it inherits Mircografix's EPM division.
The companies will spend the next few weeks working out how to merge interests, but Corel said it was expecting to see cash flow and earnings per share improve as soon as the fourth quarter of the current fiscal year.
In March, the Canadian company announced it was expecting to be profitable by the first quarter of next year - six months ahead of schedule.
Prior to this, Corel's financial health had been in a critical position. Banking giant Canaccord Capital bailed the software vendor out in June with a $30m cash injection only just saving it from collapse.
For related news, see
Back to black: Doubt surrounds Corel optimism
http://www.silicon.com/a43467
Corel to spin off Linux arm and promises profit by Q3
http://www.silicon.com/a42221
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