Ottawa-based Corel is paying $13 per share for Nasdaq-quoted InterVideo. InterVideo’s stock jumped $32% to $3.04 on Monday morning after the deal was announced.
The deal is expected to close in the fourth quarter. The purchase is expected to be accretive in the second quarter.
InterVideo’s digital video and multimedia products let users to record, edit, author, distribute and play digital multimedia content on PCs and hand held devices. The company has also invested in video imaging products after taking a majority stake in Ulead Systems Inc in 2005, allowing it to get an early toehold into the nascent high definition and Blu-Ray DVD solutions market.
Corel said that InterVideo will boost its revenue growth and also give it a firmer foothold in the Asia markets, which the company has been looking to expand into for some time.
This acquisition is especially strategic for Corel given InterVideo’s strength in China, Taiwan and Japan that are regions that Corel has targeted for expansion, Corel officials said.
Corel develops a range of personal productivity desktop software, including word processing, graphics, and painting applications.
