PeopleSoft wraps up Edwards deal
- By Lloyd Batzler
- Jul 18, 2003
The wedding is over. But will Oracle spoil the honeymoon?
PeopleSoft Inc. announced this morning it has completed its acquisition of J.D. Edwards & Co. after buying 88 percent of the outstanding shares of the enterprise software company in a tender offer that expired Thursday midnight.
The deal's rapid close came weeks after Oracle Corp. launched what evolved into a hostile, litigious bid for PeopleSoft, an application software maker.
"With the resources of the combined company, we will continue to make our customers stronger and solve their most pressing business problems,' Bob Dutkowsky, the chairman, president and CEO of Denver-based J.D. Edwards, said in a statement. 'We're combining ' companies that together will set a new standard in serving the needs of enterprise application software customers."
PeopleSoft paid $14.74 in cash, stock or a combination of cash and stock for each share of Edwards common stock. It said it hopes to close deals for other outstanding shares by the end of August.
PeopleSoft president and CEO Craig Conway, in a statement, said the merger's creation of the world's second-largest enterprise software company 'expands not only our customer base, product offerings and markets, but also our talent.'
But Oracle late Thursday vowed to press ahead with its bid for PeopleSoft.
'We believe time is on our side,' said Jim Finn, an Oracle spokesman, in a statement. 'Oracle remains committed to acquiring PeopleSoft'even with the addition of J.D. Edwards."
Oracle's latest $19.50-a-share cash offer for PeopleSoft is $3.50 more than its first offer June 6.
PeopleSoft was at $17.87 in mid-morning trading Friday.
On Thursday, PeopleSoft, of Pleasanton, Calif., reported second-quarter revenues of $497 million, in line with earlier expectations.