Vector Capital is selling Corel Corp again and this time the buyer is KKR, according to a source.
Corel is expected to fetch more than US$1 billion ($1.3 billion), the person said.
Corel is the Ottawa provider of graphics and office productivity packaged software, known for consumer-focused products like CorelDraw, WordPerfect, WinZip, PaintShop Pro and WinDVD.
News of the Corel sale to KKR was previously reported by LevFin Insights. Citi, KKR Capital Markets and Barclays are providing debt financing for the transaction, including a US$550 million first-lien term loan and a US$135 million second-lien term loan, LevFin said.
Vector, the San Francisco technology-focused private equity firm, first invested in Corel in 2003. The firm acquired Corel for US$133 million that year.
The company went public three years later, raising US$104 million in 2006. But Corel’s stock under-performed, and in 2010 Vector took the company private again.