|Page (1) of 1 - 10/30/01||email article||print page|
Corel Acquisition Approved by Micrografx ShareholdersNew executives announced, 200 positions eliminated (October 30, 2001)
The stock-for-stock transaction is expected to close today.
As part of its plan to integrate the companies, Corel will support all of Micrografx's current businesses, which include the recently-released Picture Publisher 10, Picture Publisher Digital Camera Edition and Micrografx Designer 9. Corel is also committed to supporting and growing Micrografx's Enterprise Process Management (EPM) business.
In addition, Corel will aggressively pursue opportunities to capitalize on the strengths of both companies and broaden its combined worldwide customer base. Corel will leverage Micrografx's world-class technology and solid brand recognition to expand its presence in the technical illustration market. The company will build on its combined enterprise customer base as it positions itself to address the much larger, emerging market of cross-media publishing.
"Now that we have successfully brought these two companies together, we are very pleased to take the next step and make full use of our complementary strengths to realize the incredible opportunities ahead," said Derek Burney, president and CEO of Corel. "I'm also pleased to today welcome several new members to Corel's executive management team. Each one will play an important role in implementing the exciting plans we have mapped out for the company."
Joining the company's executive management team are:
As indicated when Corel and Micrografx signed the definitive acquisition agreement on July 16, 2001, the companies have identified cost synergies that are being realized as part of the integration. In order to realize the full value of the acquisition, the companies will be eliminating approximately 200 positions due primarily to overlap identified during the integration process. Following the workforce adjustment, Corel's current headcount will remain relatively constant at approximately 950 employees worldwide.
"These adjustments to our workforce demonstrate the decisive steps we are taking to realize the full benefit of this acquisition," added Burney. "At the same time, we are taking this opportunity to make strategic investments to drive our momentum in the marketplace. We are aligning the organization to address the customer segments where we see the greatest opportunities for Corel's future growth. This includes significant investments in our EMEA operations, designed to expand our global profile and drive revenues in these key markets.
"We've also established a new division within the company to capitalize on Corel's influence and profile with customers and partners in our targeted markets. Steve Houck will lead this new team as executive vice-president, strategic relations. Mr. Houck is ideally suited for this position with his vast experience fostering key relationships with high-profile industry partners such as Apple and Microsoft as head of worldwide sales for Corel."
For more information, visit www.corel.com .
Source:Digital Media Online. All Rights Reserved