PeopleSoft closes deal to buy J.D. Edwards

PeopleSoft Inc. Friday 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 US$14.74 in either cash, PeopleSoft stock, or a combination for each share. Those that did not tender their shares will receive US$7.05 in cash in addition to 0.43 of a PeopleSoft share.

The total value of the deal is US$1.8 billion, PeopleSoft said in a release Wednesday.

Michael Maples, a J.D. Edwards board member, has been elected to the PeopleSoft board of directors as part of the acquisition, PeopleSoft said Friday.

PeopleSoft has been fending off a hostile takeover attempt by Oracle Corp. while it completed the J.D. Edwards acquisition. Oracle will stay the course, a spokesperson said Friday. “We believe time is on our side. Oracle remains committed to acquiring PeopleSoft, even with the addition of J.D. Edwards,” Oracle spokesperson Jim Finn said in a written statement.

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

– With files from David Legard, IDG News Service