PeopleSoft merger to create software giant
Published: 02 Jun 2003 13:07 BST
Application software company PeopleSoft will acquire J.D. Edwards in a stock deal worth $1.7bn, the companies said on Monday. The merger will create the second-largest business software company.
The deal calls for each share of J.D. Edwards stock to be exchanged for 0.86 of a PeopleSoft share, valuing J.D. Edwards' stock at around $14.10 -- a 19 percent premium over Friday's closing price of $11.81.
The merger will create a company with $2.8bn in annual revenue, 13,000 employees and more than 11,000 customers in 150 countries.
PeopleSoft said the deal will help expand its business presence in manufacturing, distribution and asset-intensive industries.
"With PeopleSoft's strength in the large enterprise space and services industries, combined with J.D. Edwards' position as an acknowledged leader in the midmarket and manufacturing, we will be able to serve the entire enterprise software market in a way that no other vendor can," J.D. Edwards chief executive Bob Dutkowsky said in a release.
PeopleSoft saw its stock tumble by more than 50 percent in 2002, while sales dropped 8 percent and earnings fell 5 percent over the course of the year.
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