Corel and Inprise (the artist formerly known as Borland) have called off their merger.

An official statement from Corel was issued this afternoon, in which the company said: "Because of significant changes since the merger was agreed to more than three months ago, Corel has concluded that it is in its best interest to terminate the agreement at this time."

There will be no termination payments made and the two parties will honour the three year "stand-still covenant" already entered into.

Corel expects to save somewhere in the region of $40 million per year thanks to the demise of the merger agreement. ®