PeopleSoft closes deal to buy J.D. Edwards

PeopleSoft Friday closed its deal to acquire J.D. Edwards & Co., purchasing 88 percent 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 $7.05 in cash in addition to 0.43 of a PeopleSoft share.

The total value of the deal is $1.8 billion, PeopleSoft said in a release Wednesday. Shares of J.D. Edwards were valued at $14.70 at the close of trading Thursday on the Nasdaq.

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 spokesman said Friday. "We believe time is on our side. Oracle remains committed to acquiring PeopleSoft -- even with the addition of J.D. Edwards," Oracle spokesman Jim Finn said in a written statement.

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

(David Legard in Cairns, Australia, contributed to this report.)

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