02 June 2003 | Robin Parker
PeopleSoft is to buy fellow collaborative software vendor JD Edwards for $1.7 billion.
With the purchase, PeopleSoft expects to grow its mid-market customer base and gain access to more than 20 sectors, including a range of services, manufacturing and distribution industries.
The companies specialise in customer relationship management and collaborative supply chain and financial software. They have more than 11,000 customers in 150 countries between them, and combined annual revenues of $2.8 billion.
Under the terms of the deal, to be completed in the second half of this year, JD Edwards will be a wholly owned subsidiary of PeopleSoft, and its stockholders will own a quarter of the combined company's outstanding capital stock.
The announcement comes just a week ahead of JD Edwards' annual user conference in Denver, Colorado, where it will announce several launches and upgrades within the JD Edwards 5 product suite.
Bob Dutkowsky, JD Edwards' chairman and chief executive, described the move as a "giant leap forward" for both companies.
"With PeopleSoft's strength in the large enterprise space and service industries, combined with JD Edwards' position as an acknowledged leader in the mid-market manufacturing, we will be able to serve the entire enterprise software market in a way that no other vendor can," he said.