Corel to acquire graphics-software maker

Corel on Monday said it plans to acquire enterprise process- and graphics-software maker Micrografx in a stock swap worth $32 million. The deal, subject to regulatory and Micrografx's shareholder approval, is part of Corel's strategy to expand its offerings.

Demand for the company's graphics, word-processing and spreadsheet software has weakened, analysts said. The acquisition price should be equal to Micrografx's 2001 annual revenue, which is expected to be $32 million, and values the Dallas, Texas-based company at $2 per share, Corel said in a statement. If the price of Corel's shares close below $2.90 when the deal wraps up sometime in Corel's fourth quarter, Corel will pay one-half of the transaction value in cash, the company said. The other half of the payment will be made one year after the closing, either in cash--if Corel's shares are below $2.90--or in stock plus a premium based on the closing price of Corel stock if the shares are above $2.90.