PeopleSoft set to acquire JD Edwards
PeopleSoft has unveiled plans to acquire JD Edwards for US$1.7 billion in stock. Combined, the companies will form the second largest enterprise applications software company in the world.
PeopleSoft has unveiled plans to acquire JD Edwards. Under the terms of the agreement, stockholders will receive 0.860 PeopleSoft common shares for each outstanding JD Edwards common share. Based on the closing price of PeopleSoft stock on May 30, 2003 and J.D. Edwards’ shares outstanding, the transaction is valued at approximately US$1.7 billion.
Combined, the companies will form the second largest enterprise applications software company and boast approximately US$2.8 billion in annual revenues, 13,000 employees and more than 11,000 customers in 150 countries. For PeopleSoft, the deal will also enable it to expand its presence in more than 20 industries, including a broad range of services, manufacturing, distribution and asset-intensive sectors.
“The combination of JD Edwards and PeopleSoft is a winning one for customers. Both mid-sized and large enterprise customers will have access to the broadest suite of integrated enterprise software applications in the world,” says PeopleSoft’s president & CEO, Craig Conway. “We are excited and confident about what this acquisition will mean for our customers and the enterprise software industry,” he adds.
“With PeopleSoft’s strength in the large enterprise space and services industries, combined with JD Edwards’ position as an acknowledged leader in the mid-market and manufacturing, we will be able to serve the entire enterprise software market in a way that no other vendor can. The integration of the two companies is a giant leap forward in fulfilling JD Edwards’ goal to make customers stronger,” adds JD Edwards’ chairman, president & CEO, Bob Dutkowsky.
The announcement comes just weeks after JD Edwards had spent several million dollars establishing a direct presence in the Middle East through the acquisition of its UAE partner, Dalma Computer Systems. That deal was engineered to not only boost its sales and market share in the region, but also improve customer service and introduce local businesses to JD Edwards’ extended product portfolio. How PeopleSoft’s plans will affect the newly formed local operation remains to be seen.