Novell and Corel Announce Definitive Agreements
Orem, UT -- Ottawa, Canada -- January 31, 1996 -- Novell, Inc. and Corel
Corporation today announced a definitive agreement for Corel to acquire the PerfectOffice
application suite, WordPerfect word processing applications, QuattroPro spreadsheet and related
software from Novell in exchange for 9.95 million shares of Corel common stock and $10.75
million in cash. Concurrently, Corel will license GroupWise client software, Envoy electronic
publishing software and other technologies from Novell for a minimum royalty obligation of $70
million over the next five years.
The common stock Novell will receive represents approximately 20 percent of Corel's current
outstanding shares. Novell is also entitled to nominate a candidate for Corel's board of directors.
The companies expect the agreements to close within thirty days, conditional on U.S.
Government approval under the Hart-Scott-Rodino Act. Shareholder approval is not required by
Novell anticipates that after costs and other charges, the Corel agreement will result in a slight
one-time extraordinary gain in Novell's second fiscal quarter ending April 27, 1996. The software
being sold and licensed to Corel is a portion of that acquired in Novell's $855 million
pooling-of-interests merger with WordPerfect Corp. in June 1994. Novell retains ownership of
GroupWise, Envoy and other technologies acquired in that merger.
Michael Cowpland, CEO of Corel, said, "We are very enthusiastic about the fit of these products
within Corel's business. We believe they will strategically extend the solution value that Corel
brings customers worldwide. Corel has earned the loyalty and support of millions of users and
expects to attract the same level from current users of WordPerfect and PerfectOffice. Corel plans
to release versions of these applications for Windows 95 and Windows NT this spring, continuing
to deliver the product excellence that both WordPerfect and Corel customers have come to
Novell chairman and CEO Robert J. Frankenberg said, "Corel's success in developing and
marketing best-of-breed PC application software products worldwide makes them an ideal partner
to advance these application products in the future. For end-user customers, OEM and channel
partners, Corel and Novell can ensure a smooth transition in areas of support, education,
developer and licensing programs."
Corel will lease facilities from Novell and hire certain Novell employees engaged in the continued
development and support of application products.
Corel is recognized internationally as an award-winning developer of PC graphics and multimedia
software. CorelDRAW, Corel's industry-leading graphics software, is available in over 17
languages. After its purchase of the Novell application software, Corel becomes the second
largest independent vendor worldwide of personal productivity applications. Corel Corporation is
traded on the Toronto Stock Exchange (symbol: COS) and the NASDAQ, National Market
System (symbol: COSFF).
Novell, Inc. (NASDAQ: NOVL), is the world's leading networking software provider. Novell
software provides the infrastructure for a networked world, enabling our customers to connect
with other people and the information they need, anytime and anyplace. Novell partners with
other technology and market leaders to help customers make networks a part of their everyday
Phone: (408) 577-6842
Corel PR Contact:
Phone: (613) 728-0826 ext.1524
Corel IR Contact:
Phone: (613) 728-0826 ext.1194