[askdba] Oracle Ups Its Offer and Buys PeopleSoft for $10.3 Billion
- From: "Vinod Gopinath BMMI IS" <vinodg@xxxxxxxxxxx>
- To: <askdba@xxxxxxxxxxxxx>
- Date: Mon, 13 Dec 2004 17:25:29 +0300
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Published: December 13, 2004
The business software company Oracle
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Corporation announced today that it had signed a "definitive merger
agreement" to acquire its main American rival, PeopleSoft
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Inc., in a deal worth about $10.3 billion.
The company, based in Redwood City, Calif., increased its offer, after
an 18-month battle to acquire PeopleSoft, to $26.50 a share, a month
after insisting that $24 a share remained its "best and final" bid.
"Today we announced both a great quarter and the agreement to acquire
People Soft," Oracle's chief executive, Larry Ellison, said in a
statement posted on its Web site. "This merger gives Oracle even more
scale and momentum."
He added: The real highlight of our most recent quarter was the 57
percent growth in our applications business, and this merger is going to
make that applications business bigger and stronger."
The bid was approved by the boards of directors of both companies, and
is expected to close by early January.
The majority of PeopleSoft's shareholders had accepted Oracle's $24 a
share, which valued the company at $8.8 billion.=20
But PeopleSoft, based in Pleasanton, Calif., released information on
Dec. 7 showing that its shares were worth $31 apiece, which it used to
reject Oracle's offer for the fifth time since 2003.
Oracle cleared the final regulatory hurdle to a takeover in October when
the European Commission said the deal would not harm competition.
For Oracle, PeopleSoft is expected to resuscitate an applications
business that last quarter had a 36 percent decline in license revenue.
The acquisition will elevate No.3-ranked Oracle to No.2, behind SAP of
Germany, the world's biggest maker of business-management software.
=20
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