Corel Buy Approved by SoftQuad Shareholders, Unveils Integration Plans
Press release from the issuing company
OTTAWA--March 14, 2002--Corel Corporation and SoftQuad Software Ltd. today announced that the acquisition agreement signed by the companies has been approved by SoftQuad's shareholders. The stock-for-stock transaction is expected to officially close tomorrow.
As part of its plan to integrate the companies, Corel will support all of SoftQuad's current businesses, including its award-winning XML (Extensible Markup Language) editor and development platform, XMetaL, as well as the popular HoTMetaL product line. In addition, Corel is pursuing new opportunities to address the enterprise market by leveraging SoftQuad's industry-leading XML technology and expertise. Corel recently introduced a new brand to deliver enterprise solutions DEEPWHITE.
"With the completion of the SoftQuad acquisition, we are well equipped and uniquely positioned to deliver enterprise-class solutions that will give organizations the tools they need to significantly improve productivity, reduce workflow-related costs and generate new revenue opportunities. XML and other open standards are the key ingredients of the enterprise solutions Corel will offer through its DEEPWHITE brand,'' said Derek Burney, president and CEO of Corel Corporation. "SoftQuad's pioneering efforts in the XML space will greatly assist Corel in delivering on this strategy, not just in terms of the technology and development assets we are acquiring but the enterprise-level expertise we're gaining through their established marketing, sales and professional services teams.''
Among the employees joining Corel from SoftQuad, Dr. Bruce Sharpe, former chief technical officer at SoftQuad, will become a member of Corel's executive management team as executive vice-president, XML content solutions. Among his key responsibilities, Dr. Sharpe will lead the company's product strategies for XML content solutions to be offered as part of DEEPWHITE.
As indicated when Corel and SoftQuad signed the definitive acquisition agreement on August 7, 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, SoftQuad has eliminated approximately 35 positions from its workforce due primarily to redundancies identified during the integration process. Cost synergies are also being realized from the closure of three SoftQuad offices based in Toronto, Seattle and the United Kingdom.
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