Oracle is claiming victory in
its 18-month pursuit of PeopleSoft , saying enough stockholders tendered their shares in the takeover deal.
The acquisition creates the second largest purveyor of enterprise resource
planning software (ERP) behind market leader SAP AG
Executives at Oracle issued a statement late Thursday claiming the
Redwood Shores, Calif.-based database software vendor secured more than
97 percent of PeopleSoft’s outstanding stock. The offer was extended
until 8 pm New York City time on January 6, after Oracle came up only a
few percentage points below 90 percent.
A stake of more than 90 percent of outstanding shares means Oracle
has bypassed the need for a proxy vote and can “move ahead quickly with
the integration of the two companies.” In a note to customers this week,
Oracle co-president Chuck Philips said the two companies are beginning
the development plans for the combined companies’ Java-based successor
product.
Shareholders now have the option of taking $26.50 per share in cash.
Following the merger, PeopleSoft will be a wholly-owned subsidiary of
Oracle, the company said.
A spokesman for Oracle said the company has tentatively scheduled an
announcement for Jan. 14 that should outline changes to the management
structure and the number of PeopleSoft or Oracle employees being laid
off.
Oracle will officially celebrate the addition of PeopleSoft at a
company event on Jan. 18; the company has also planned an analyst
meeting in New York on Jan. 26th in order to discuss the integration of
the two companies.
“Oracle will continue to enhance the PeopleSoft product lines, and we
will release a next version of both the Enterprise and EnterpriseOne
products,” Philips said in a January 5 letter to customers. “We are
committed to supporting PeopleSoft Enterprise Version 8 until at least
2013, and we will continue to support the World product according to
existing PeopleSoft policies.”
Even with the integration of PeopleSoft under way, Oracle has not entirely ruled out the promise of another mega-merger. But Philips has said the company will need at
least two strong quarters of earnings before putting shareholders
through the rigors of another merger.
A look back at some of the key highlights in the fight to merge the
business
application giants is here.
