Some consolidation is afoot on the planet of enterprise software program. TechCrunch has realized from a number of sources that Parallels, the virtualization software program specialist with thousands and thousands of customers, is getting acquired by Corel, the Canadian firm behind design apps like CorelDraw and productiveness apps like WordPerfect that when competed closely with Microsoft.
Staff at Parallels had been briefed on the acquisition Tuesday, one supply mentioned. Phrases haven’t been disclosed, however we perceive it’s an all-cash deal.
The acquisition is anticipated to shut in December, and the businesses will make the information public then. From what we perceive, Corel will maintain Parallels as an unbiased product.
Now we have written each to Corel and Parallels. Corel has not responded and Parallels mentioned it “doesn’t have any information to announce and doesn’t touch upon rumors or hypothesis”. One other supply near the corporate mentioned he wouldn’t be capable to remark till later (presumably after the deal is finalised).
Corel has modified possession and gone out and in of being listed publicly quite a lot of occasions since being based within the 1980s in Ottawa. It’s now owned by Vector Capital, which is basically the one shopping for Parallels.
Parallels was initially based in 1999 with roots in Russia and is at present headquartered in Bellevue, Washington.
It has by no means made a lot of a fanfare round its financing or valuation. In accordance with PitchBook its final funding spherical was in 2015, an undisclosed quantity from Endeavour Imaginative and prescient, KG Investments, Maxfield Capital, Savano Capital Companions and others. It raised $300 million from Ingram Micro the yr earlier than that.
It’s not totally clear what the rationale was for the sale, besides it appears many buyers had been longstanding and seeking to exit, whereas Corel has slowly been consolidating quite a lot of smaller software program companies. Most not too long ago earlier than this, it acquired Gravit Designer from Germany earlier this yr.
Parallels gives quite a lot of merchandise that assist individuals work seamlessly throughout a number of platforms, primarily letting individuals (and IT managers) run a unified workflow whatever the gadget or working system, starting from Home windows, Mac, iOS, Android, Chromebook, Linux, Raspberry Pi and cloud — a very compelling providing within the present, fragmented IT market.
Corel as soon as had designs to tackle Microsoft on the planet of software program. When it bought WordPerfect from Novel in 1996, Corel founder Michael Cowpland (not with the corporate) noticed the software program bundle as an integral a part of that rivalry, describing it because the Pepsi to Microsoft’s Coke — that’s, Phrase.
That didn’t actually pan out, with Microsoft on the time having a vice grip on platform and software program (this was earlier than the rise of Google, the rebirth of Apple, the rise of apps, and different large shifts within the business). At one level, Microsoft signed a partnership with Corel that noticed it investing within the firm: a sell out, as one disenchanted Canadian journalist described it on the time.
The 2 have additionally sparred over patents.
Today, Corel is “extremely worthwhile”, says Vector, promoting software program that features CorelDraw, WordPerfect, WinZip, PaintShop Professional, and WinDVD.
You can doubtlessly think about Parallels present alongside that portfolio to enhance usability — both by integrating Parallels’ performance into Corel’s different software program, or by promoting the merchandise in bundles.
There have been quite a lot of enterprise software program acquisitions with a view to legacy companies elevating their sport in open supply, cloud and different newer developments. Essentially the most notable of those has been IBM announcing its intent to acquire Red Hat for $34 billion in October.