- PeopleSoft shook the enterprise software application landscape on Monday by announcing that it plans to purchase JD Edwards & Co in a stock deal valued at approximately $US1.7 billion.
As part of the deal, stockholders will receive 0.860 PeopleSoft common shares for each outstanding JD Edwards common share, the companies announced.
By absorbing JD Edwards’ mid-market and manufacturing integration prowess, PeopleSoft says it will boost considerably its enterprise software and services presence within distribution and asset-intensive industries.
PeopleSoft is jostling with fellow CRM and enterprise software titans Oracle, Siebel Systems, and SAP to push its applications suite, which provides supply chain management, human resources management, financial management, and application integration.
Together, PeopleSoft and JD Edwards form a mammoth enterprise software entity featuring approximately $US2.8 billion in annual revenue, 13,000 employees, and more than 11,000 customers in 150 countries.
The boards of directors of both companies have unanimously approved the acquisition. Once closed, Denver, Colorado-based JD Edwards is slated to operate as a wholly owned subsidiary of Pleasanton, California-based PeopleSoft.
The transaction is expected to close in the late third or early fourth quarter of this year and will be tax-free to stockholders of PeopleSoft and JD Edwards.