KKR to buy graphics-software provider Corel from Vector

  • Vector to receive over $1 bln for Corel
  • Vector took Corel private twice, in 2003 and 2010
  • Last LBO was valued at $210 mln

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 $1 billion, the person said. UBS is advising Vector Capital on the sale process, the source 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 $550 million first-lien term loan and a $135 million second-lien term loan, LevFin said.

Vector, the San Francisco technology-focused PE firm, first invested in Corel in 2003. The firm acquired Corel for $133 million that year.

The company went public three years later, raising $104 million in 2006. But Corel’s stock underperformed, and in 2010 Vector took the company private again. PitchBook valued the LBO at $210 million.

Before its second take-private, Corel reported revenue of $268.2 million for 2008, according to an SEC filing.

Since 2010, Corel has been acquisitive, buying Parallels in December. Other add-ons include Gravit, ClearSlide, Mindjet and ReviverSoft.

Vector manages over $4 billion. The firm closed its fifth flagship on $1.4 billion in February 2017.

KKR declined comment. Vector, Corel and UBS did not return requests for comment.

Action Item: Call Vector in San Francisco at +1 415-293-5000.