PeopleSoft Buys J.D. Edwards
Enterprise software maker chases SAP, gains new breadth in vertical markets.The number of major enterprise software players out there decreased by one today as PeopleSoft Inc. announced a deal to buy rival J.D. Edwards & Co. in a deal valued at about $1.7 billion. The deal, which has been approved by the boards of both companies and is expected to close in the third or fourth quarter, gives PeopleSoft, of Pleasanton, Calif., stronger offering and an established customer base in the manufacturing vertical. PeopleSoft will expand its presence in 20 vertical industries in total, officials from the company said. Denver-based J.D. Edwards also brings a strong presence among mid-sized companies. It will become a subsidiary of PeopleSoft. The combined companies will have about 13,000 employees.
Both companies will plug holes in their overall product offerings, officials said. After the deal closes, PeopleSoft will have an enterprise unit, a mid-market unit and an AS/400 unitthe latter two based on J.D. Edwards offerings.