Corel shareholders vote for Vector acquisition

Corel shareholders voting overwhelmingly Wednesday to approve the US$124 million takeover of the company by investment company Vector Capital, Corel said in a statement.

Over 80 percent of votes cast were in favor of the acquisition, according to the statement. The vote indicates that Corel shareholders see the need for strong financing behind the company during difficult times, according to Derek Burney, president and chief executive officer (CEO) of Corel.

"While Corel continues to develop some of the most innovative software in the industry, it still faces challenges converting enthusiasm for its products into meaningful revenue growth that will be rewarded by the market," Burney said in the statement.

Ottawa-based Corel will seek final approval for the deal on Thursday from the Ontario Superior Court of Justice, which had mandated the shareholder vote. If court approval is granted, the acquisition is expected to be completed next week, Corel said in the statement.

San Francisco-based Vector Capital first announced its intentions to buy Corel back in March and Corel's board agreed to the deal -- and the purchase price -- in June.

A group of shareholders opposed to the takeover, called Corel Rescue, plans to continue court action against the acquisition, local media reported.

Corel, best known for its Corel Draw graphics package, has struggled to turn a profit in recent times, and laid off 60 staff, or 9 percent of its workforce, in July.

Corel will be delisted from the Toronto and Nasdaq stock markets and return to being a private company once the acquisition is complete.

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