PeopleSoft Locks In J.D. Edwards Price

Purchase of smaller enterprise software maker set to close on Thursday, Oracle waiting in the wings.

Locking in the price of its J.D. Edwards & Co. acquisition, PeopleSoft Inc. announced today that JDE stockholders will receive close to $14.75 in cash or 0.8243 of a PeopleSoft common share for each JDE share.

The total transaction will amount to $1.8 billion based on a per share consideration. Shareholders can also receive a combination of cash and stock for the each JDE share, officials said.

PeopleSoft, of Pleasanton, Calif., will finalize the widely anticipated JDE acquisition by Thursday at midnight. The combination of the two enterprise software providers should create the second-largest company in the market, edging ahead of Oracle Corp. but still trailing SAP AG.

The U.S. Department of Justice cleared the transaction earlier this week.

PeopleSoft announced in early June its intentions to acquire JDE, at which time the DOJ made a standard request for information to determine the competitive nature of the deal. The DOJs deadline to make a second request for information in the PeopleSoft/JDE transaction, which would have signaled antitrust concerns, expired this week. When that request didnt come through, PeopleSofts acquisition path was cleared.

Just days after PeopleSoft announced its intentions to buy Denver-based J.D. Edwards, Oracle launched its hostile takeover bid for PeopleSoft.

The DOJ has lobbed a second request for information regarding the competitive nature of Oracles proposed PeopleSoft acquisition—which could mean serious antitrust issues for that transaction.

Oracle, of Redwood Shores, Calif., has said it is not interested in acquiring JDE. However, the company on Monday extended its tender offer of PeopleSoft until Aug. 15. Its speculated that with JDE under the PeopleSoft umbrella, Oracle will have to raise its tender offer or walk away from the deal.

The final per share price for JDE stock represents a value of about 43 percent of a PeopleSoft common share, based on its average five-day closing price—ending July 15—of $17.88.

Oracles last offer for PeopleSoft stands at $19.50 per share.