PeopleSoft acquires JD Edwards

Business software group PeopleSoft has acquired smaller rival JD Edwards.

    Despite the addition of JD Edwards, Oracle says it will contine to pursue PeopleSoft

    The completion of the deal ends the long-awaited merger which was almost thrown off track by the surprise hostile takeover bid by software giant Oracle, to acquire PeopleSoft.

    "The powerful combination of PeopleSoft and JD Edwards creates the second largest enterprise applications software company in the world," said PeopleSoft president and chief executive Craig Conway.

    The bid is valued at $1.75 billion.

    Conway added that the deal marked an "important milestone" in the company's history.

    "The combination expands not only our customer base, product offerings, and markets, but also our talent," he said.

    PeopleSoft's takeover of JD Edwards went ahead after the Department of Justice agreed to cut short a waiting period required under antitrust legislation.

    PeopleSoft fought off a fierce battle against Oracle, telling shareholders that the Oracle bid, “poses extraordinary risks and is destructive to stockholder value.”

    But Oracle has sued PeopleSoft, charging its board is in breach of its duties to shareholders. For their part, PeopleSoft and JD Edwards both have sued to block Oracle's takeover.

    Oracle, which launched its bid for PeopleSoft in early June, said Monday it had acquired 43.77 million PeopleSoft shares – about 13.8 percent of the outstanding stock.

    "We believe time is on our side. Oracle remains committed to acquiring PeopleSoft, even with the addition of JD Edwards," Oracle spokesman Jim Finn said.

    The Oracle bid is being reviewed for possible antitrust concerns by the Justice Department.

    SOURCE: Agencies


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