Inprise draws on Corel

Creating a self-proclaimed "Linux powerhouse", the new entity, to be called Corel, will offer "end-to-end solutions featuring a range of productivity applications, development tools, and professional services for all major platforms".

Bradbery said the merged entity's products were complementary, and would lead to a number of advantages for the industry and consumers alike.

He said both companies sold their products through the same channel with common distributors, and as a single organisation the new company would take advantage of the opportunity to focus on the retail channel. "We can spread our marketing dollars in a more focused manner, and we will also have the ability to put together target packages that will offer price advantages to the channel," Bradbery said.

He also said there would be no staff losses locally, and claimed Inprise was more likely to recruit extra staff this year, after continued growth of over 20 per cent over the past two years. During this time, Bradbery said the company's staff had increased by over 300 per cent to 86 personnel.

The merger will see Inprise shareholders receive 0.747 Corel common shares for each share of Inprise common stock held.

The two companies said they had total revenues of approximately $418 million in 1999 and currently have over $200 million in cash.

Corel recently released Corel Linux, a desktop operating system, and Inprise recently announced Jbuilder 3 Foundation -- a Java development environment for Linux.

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