Software firm PeopleSoft has agreed to accept Oracle’s proposal to buy the company. The agreement was for $10.3 billion or $26.50 a share. The agreed-upon total is an increase of the initial offering which was for $24 a share. The deal is expected to be complete by January 2005.
The PeopleSoft agreement marks an end to an ugly process where JD Edwards was considered the initial buyer. JD Edwards was, much to PeopleSoft’s chagrin, outbid by Oracle.
Oracle Chief Executive Officer Larry Ellison had these thoughts concerning the merger, “Today we announced both a great quarter and the agreement to acquire PeopleSoft. This merger gives Oracle even more scale and momentum. The real highlight of our most recent quarter was the 57 percent growth in our applications business, and this merger is going to make that applications business bigger and stronger.”
Ellison speculated that the merger would add about 1 cent a share worth of profits to Oracle’s stock for the 4th quarter of 2004. The agreement also stipulates that any pending litigation will be stayed until the merger is complete. After the Oracle/PeopleSoft purchase is complete, all pending legal action will be dismissed.
About the merger, A. George “Skip” Battle, PeopleSoft’s Chairman of Transaction Committee, said:
“After careful consideration, we believe this revised offer provides good value for PeopleSoft stockholders and represents a substantial increase in value from October. PeopleSoft is a strong and vibrant company. Our fourth quarter numbers have been running ahead of plan. Our ability to deliver this shareholder value would not have been possible without the relentless efforts of our employees.
This has been a long, emotional struggle, and our employees have consistently performed well under the most challenging of circumstances. The Board salutes our employees for their outstanding dedication to PeopleSoft and is grateful to our customers who have continued to buy our products and stand by us during these uncertain times.”
Chris Richardson is a search engine writer and editor for Murdok. Visit Murdok for the latest search news.
