Under the terms of the agreement, the desktop software maker will bundle its Corel Print House 2000 with the HP ScanJet 4300C scanner, which is targeted to the home market.
The bundling agreement will include a number of localized versions of Corel Print House 2000, the companies said. Financial terms of the deal were not disclosed.
On news of the deal, Corel's stock shot up $2 from $3.63 to $5.63.
The news and subsequent rise in the Corel's stock price come amid some tough times for the Canadian software maker, which competes against Microsoft in the desktop software market.
Last week, Ottawa-based Corel, best known for its CorelDraw and WordPerfect software, posted a deep second-quarter loss that reflected dwindling cash reserves, shrinking demand for established products, and little indication that new Linux operating system products will soon save the day, according to analysts.