PeopleSoft closes deal to buy J.D. Edwards

PeopleSoft closes deal to buy J.D. Edwards

PeopleSoft has closed its deal to acquire J.D. Edwards & Co., purchasing 88 per cent of the outstanding shares of its fellow enterprise software firm, and expecting to buy the remaining shares by the end of August.

J.D. Edwards stockholders, who tendered their shares in response to PeopleSoft's offer, received $US14.74 in either cash, PeopleSoft stock, or a combination for each share. Those that did not tender their shares will receive $US7.05 in cash in addition to 0.43 of a PeopleSoft share.

Because less than 90 per cent of shareholders tendered their shares, the deal is classified as a long-form merger, which means an additional step needs to be taken, a PeopleSoft spokesman. This step was merely a formality in which all J.D. Edwards shareholders vote on the acquisition, and since PeopleSoft now controls 88 percent of J.D. Edwards shares, the vote would pass, he said.

The total value of the deal was $US1.8 billion, PeopleSoft said. A J.D. Edwards board member, Michael Maples, has been elected to the PeopleSoft board of directors as part of the acquisition.

PeopleSoft president and chief executive officer, Craig Conway, is in charge of the merged company.

PeopleSoft has been fending off a hostile takeover attempt by Oracle while it completed the J.D. Edwards acquisition.

Oracle would stay the course, a spokesman said.

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

PeopleSoft last week reported earnings that met its raised expectations for second-quarter revenue and net income.

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