Vector Capital Agrees To Acquire Corel For $1.05 Per Share

The San Francisco-based firm, a Corel shareholder, will pay $1.05 per share for outstanding shares. The price was less than the $1.10 per share Corel executives wanted, but a 42 percent premium over where Corel's shares were selling before the negotiations were made public.

The deal comes as no surprise. In March, the two companies said they had entered into discussions about a possible acquisition. The companies said in a statement Friday that they expect the acquisition to close in July, pending shareholder approval.

Corel, Ottowa, is a software developer that made its name in the graphics software market and is best known for its CorelDraw and WordPerfect products. The company was also among the first major software vendors to dabble in Linux and sell Linux products before selling off its Linux assets to Xandros.

Details of the deal will be made public on Monday, officials from both companies said.