Corel shareholders have voted overwhelmingly to approve the $124 million takeover of the company by investment company Vector Capital.
Over 80 per cent of votes cast were in favour of the acquisition, according to the statement. The vote mans Corel shareholders see the need for strong financing behind the company during difficult times, according to Derek Burney, president and CEO of Corel.
"While Corel continues to develop some of the most innovative software in the industry, it still faces challenges converting enthusiasm for its products into meaningful revenue growth that will be rewarded by the market," Burney said.
Ottawa-based Corel will seek final approval for the deal on Thursday from the Ontario Superior Court of Justice, which had mandated the shareholder vote. If court approval is granted, the acquisition is expected to be completed next week, Corel said.
Vector Capital, based in San Francisco, first announced its intentions to buy Corel back in March and Corel's board agreed to the deal – and the purchase price – in June.
A group of shareholders opposed to the takeover, called Corel Rescue, plans to continue court action against the acquisition, local media reported.
Corel, best known for its CorelDraw graphics package, has struggled to turn a profit in recent times, and laid off 60 staff, or 9 per cent of its workforce, in July.
Corel will be delisted from the Toronto and Nasdaq stock markets and return to being a private company once the acquisition is complete.