PeopleSoft and JD Edwards announce $1.7 billion merger

PeopleSoft and JD Edwards & Company today announced a definitive agreement for PeopleSoft to acquire JD Edwards, creating the world’s second largest enterprise applications software company.

PeopleSoft, Inc. and JD Edwards & Company today announced a definitive agreement for PeopleSoft to acquire JD Edwards, creating the world’s second largest enterprise applications software company.

Under the terms of the agreement, stockholders will receive 0.860 PeopleSoft common shares for each outstanding JD Edwards common share. Based on the closing price of PeopleSoft stock on May 30, 2003 and JD Edwards’ shares outstanding, the transaction is valued at approximately $1.7 billion.

Combined, the companies have approximately $2.8 billion in annual revenues, 13,000 employees and more than 11,000 customers in 150 countries.

With this acquisition, PeopleSoft will expand its presence in more than 20 industries including a broad range of services, manufacturing, distribution and asset-intensive industries.

‘The combination of JD Edwards and PeopleSoft is a winning one for customers. Both mid-sized and large enterprise customers will have access to the broadest suite of integrated enterprise software applications in the world,’ said PeopleSoft President and CEO Craig Conway.

Under the agreement, JD Edwards will become a wholly owned subsidiary of PeopleSoft. JD Edwards’ stockholders will own approximately 25 percent of the outstanding capital stock of the combined company.

The transaction is anticipated to close in the late third or early fourth calendar quarter and is subject to regulatory review, approval by the respective companies’ stockholders and certain other customary conditions.