Two struggling software vendors want to pool their resources in the Windows graphics market. Corel Corp. said Monday it plans to acquire Micrografx Inc. for about $32 million in stock. The deal values Micrografx at $2 per share, a 17.6% premium over the company's July 13 closing price of $1.70.

Corel, coping with a thin supply of cash and waning demand for its WordPerfect office-productivity suite and Draw graphics applications, says the Micrografx acquisition will increase cash flow and earnings when the deal closes during Corel's fourth quarter, which ends Nov. 30. The potential cash and earnings benefits exclude any one-time integration costs. Shares of Corel closed Friday at $2.92, and trading on the stock was halted Monday.

The acquisition values Micrografx, whose stock has traded as low as 12.5 cents during the past year, at its expected $32 million in annual revenue this year. Micrografx helped spur adoption of Microsoft Windows during the operating system's early days, becoming the first independent software vendor to supply for Windows a graphics app of the type commonly found on the Macintosh platform.

Corel said Monday it will pay half the $32 million transaction value in cash if its share price falls below $2.90 when the deal closes. Corel would then pay the other half one year after the closing, either in stock, if its shares move above $2.90, or in cash, if its shares stay below that level.