Corel Corporation and Inprise/Borland Corporation announced Monday that the two companies would merge into a new company worth $2.44 billion that will do business under the name Corel. The new Corel Corporation will focus on Windows and the emerging Linux market, offering productivity applications, development tools, and services for both platforms. Corel, with its WordPerfect Office and CorelDraw application suites, is already a major player in the applications market, especially in Linux, which has historically sported weak applications support. Additionally, Corel recently introduced its own flavor of Linux, called Corel Linux, which has been reviewed favorably. Inprise/Borland is a leader in applications development products, including its C++ Builder and Delphi products.

"With Inprise/Borland's leadership in the software development community and Corel's Linux desktop operating system and productivity applications, we have an extraordinary opportunity to reach all facets of the exploding Linux market," says Corel president Michael Cowpland, "This merger enables us to offer end-to-end product solutions and global support to all of our shared customers."

"This is about responding to and leading the rapidly changing face of computing," says Inprise/Borland president Dale Fuller, who will become chairman of the new Corel. "Mike and I have a shared vision: To lead in the development of Linux and other emerging technologies that will bridge and accelerate the value of the Internet, to the world. Together, we’re already well along this path. With our combined base of 55 million customers--including small to medium enterprise customers, desktop client customers, and enterprise developers--our technologies will enable our customers to migrate to Linux faster."

When the merger is complete, Inprise/Borland will continue as a wholly owned subsidiary of Corel, and it will maintain its offices in the Silicon Valley area. The combined companies had revenues of $418 million in 1999