PeopleSoft finalise JD Edwards deal
PeopleSoft finalise JD Edwards deal
PeopleSoft has announced that it has purchased all the remaining shares of J.D. Edwards, finalising the deal that PeopleSoft executives believe will give the company the muscle to fend off Oracle's hostile overtures once and for all.
PeopleSoft bought about 105 million J.D. Edwards shares when it acquired the company back in July, a takeover that was rushed through in order to make it more difficult for Oracle to acquire PeopleSoft by jacking up the cost of any takeover. Oracle tried to oppose the deal at the time, presumable for this very reason, as well as the fact that they had no interest in taking over J.D. Edwards but would now have to if it wanted to go ahead with its move for PeopleSoft.
PeopleSoft's President and CEO Craig Conway said the early signs for the future of the new entity were already looking positive. "Over the last month we have moved rapidly to integrate the two companies. During that time, customer response has been outstanding and employees have been energised. I am more confident than ever that this combination will result in enhanced value for shareholders."
The new combined company actually leapfrogs Oracle into second place among business application providers, but still a distant second behind German company SAP.
Despite moving ahead of Oracle and completing the purchase of J.D. Edwards, and despite Craig Conway's assertion that Oracle's bid has now "flatlined," Oracle executives insist its bid is still very much alive and have pledged to continue their quest to acquire PeopleSoft.
Whether Oracle is wasting its time or not remains to be seen, though a number of hurdles remain in its path, such as the ongoing investigation by federal antitrust regulators, investigations from attorneys general from 34 states in the US, and the dogged determination of the PeopleSoft executives.
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