Oracle Offers $5.1 Billion for PeopleSoft
REDWOOD SHORES, Calif. (AP) — Oracle Corp. is making a $5.1 billion cash offer to purchase rival business software maker PeopleSoft Inc., the company announced Friday.
Oracle, the world’s largest enterprise software company, was offering $16 a share for all outstanding shares of Pleasanton, Calif.-based PeopleSoft, which creates programs that manage large companies’ personnel, customers and supply chains.
That would represent a 5.9 percent premium over PeopleSoft’s closing price of $15.11 a share on Thursday on the Nasdaq Stock Market.
On Monday, PeopleSoft said it was buying rival J.D. Edwards & Co. in a $1.5 billion stock swap. Oracle said that once the acquisition of PeopleSoft is complete, it will review whether, and on what terms, Oracle would support that transaction.
“The acquisition of PeopleSoft will immediately make Oracle an even more profitable and competitive company,” said Oracle chairman and chief executive Larry Ellison. “Although we will not be actively selling PeopleSoft products to new customers, we will provide enhanced support for all PeopleSoft products. Furthermore, we will be incorporating the advanced features from the PeopleSoft products into future versions of the Oracle eBusiness Suite.”
Oracle expects to begin the offer on Monday.
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