Corel Completes InterVideo Acquisition, Advancing Its Digital Media Software Strategy
Corel Corporation today announced the completion of its acquisition of InterVideo, Inc., a leading provider of digital media authoring and playback software with a focus on high-definition video and DVD technologies. Corel purchased InterVideo for $13.00 per share of InterVideo common stock resulting in an aggregate acquisition price of $198.6 million in an all-cash transaction. The acquisition substantially expands Corel's presence in the digital media software market by creating the industry's broadest portfolio of digital imaging and DVD video products. With the addition of InterVideo, Corel will deliver easier-to-use, multi-purpose high-definition video, imaging, and DVD creation products to consumers and enterprises worldwide while extending its presence in fast-growing Asian markets, such as China, Taiwan and Japan.
InterVideo's comprehensive suite of advanced digital video and multimedia software products allow users to record, edit, author, distribute and play digital multimedia content on PCs and other devices. In 2005, InterVideo acquired a majority interest in Ulead, a leading developer of video imaging and DVD authoring software for desktop, server, mobile and Internet platforms, and the acquisition of the remaining interest in Ulead is expected to be completed before the end of 2006. The acquisition combines Corel's key strengths - business model innovation, understanding of end user requirements and established distribution in the Americas and Europe - with InterVideo's core assets, which include video technology innovation, established partnerships with the world's leading PC OEM partners and strong market presence in the Asia Pacific region.
The combination of Corel, InterVideo and Ulead product lines form the industry's broadest portfolio of digital media software ranging from photo sharing and image editing products to advanced digital imaging, video editing, and high-definition DVD creation and playback software. Customers and partners now have access to a full breadth of popular, award-winning digital media brands including WinDVD, WinDVD Creator, Ulead PhotoImpact, Ulead VideoStudio, Ulead DVD MovieFactory, Corel Paint Shop Pro Photo, and Corel Snapfire™ - all from a single source. In addition, Corel will deliver HD DVD and Blu-ray Disc solutions to the market, just as the worldwide demand for high-definition video gains significant momentum. The InterVideo and Ulead product lines complement Corel's existing digital imaging and video products in several areas, including performance, ease of use and price. In addition, the companies share a common vision around delivering high quality, full-featured software to consumers through leading OEMs, retailers, and Internet distribution channels.
Corel will leverage its complementary geographic strengths with InterVideo and Ulead to create an even more efficient sales, marketing and product development engine. With significant development offices in California, China, Minnesota, Ottawa and Taiwan, Corel will be better positioned to meet the specific requirements of customers and partners in various locations around the world.
InterVideo and Ulead customers and partners can continue to access support through their existing contacts and channels. Further information can be found at http://www.intervideo.com, http://www.ulead.com, or http://www.corel.com.