About

Corel’s product portfolio includes well-known consumer-focused software products including CorelDraw, WordPerfect, WinZip, PaintShop Pro, WinDVD, MindManager, ClearSlide, and Parallels. The company sells its products in over 75 countries through online retailers, brick and mortar stores, and its direct download platform.

Insight & Approach

In 2002, Corel faced an uphill battle and suffered from a distracting insider trading scandal and declining revenues in the wake of the dot-com bust. Vector identified Corel as an attractive turnaround opportunity and partnered with management to take the company private in 2003. Vector and the management team successfully steered the company to financial success and completed several add-on acquisitions. In 2006, the company completed its initial public offering and restructured its credit facilities, allowing for further acquisitions, including that of InterVideo in late 2006.

In 2009, Corel’s share price came under pressure in the recessionary environment, and Vector determined that Corel was significantly undervalued and believed that the company could most effectively achieve its future growth potential as a private company. Vector completed a second take-private of Corel in 2010.

Following the second take private in 2010, Corel increased focus on e-Commerce, direct downloads, and subscription channels, streamlined its business, and targeted acquisitions that leverage the Corel platform.

Vector Value Add

Vector partnered with Corel’s management team to revamp the company’s product & go-to-market strategies and to simplify its operations, resulting in profitable growth. During its ownership period, Vector completed numerous highly accretive acquisitions, including Jasc Software, WinZip, InterVideo, Roxio Software, MindManager, ClearSlide, and Parallels. In addition, Vector was proactive in managing Corel's capital structure to balance flexibility to execute strategic M&A with return of capital through dividends.

Results

Vector sold Corel to KKR in July 2019.