Oracle > PeopleSoft

Oracle Signs Definitive Merger Pact
To Buy PeopleSoft for $10.3 Billion

WALL STREET JOURNAL ONLINE NEWS ROUNDUP
December 13, 2004 7:25 a.m.

REDWOOD SHORES, Calif. -- After more than a year of legal wrangling, PeopleSoft Inc. agreed to be acquired by Oracle Corp. for $26.50 a share, or about $10.3 billion.

The agreement, which comes 18 months after Oracle launched its hostile-takeover bid for Pleasanton-based PeopleSoft, represents a $2.50 boost in Oracle's last offering price. The deal has the approval of the boards of both companies and should close by early January.

SOFTWARE FIGHT See complete coverage of Oracle's pursuit of PeopleSoft

Oracle agreed to revise its $24-a-share offer by Wednesday, Dec. 15, and the tender will remain open through Dec. 28, unless extended.

The agreement announced by both companies Monday halts all pending litigation.

"This merger gives Oracle even more scale and momentum,'' said Oracle Chief Executive Larry Ellison. "The real highlight of our most recent quarter was the 57% growth in our applications business, and this merger is going to make that applications business bigger and stronger.''

"After careful consideration, we believe this revised offer provides good value for PeopleSoft stockholders and represents a substantial increase in value from October," said A. George "Skip" Battle, Chairman of PeopleSoft's Transaction Committee. "This has been a long, emotional struggle, and our employees have consistently performed well under the most challenging of circumstances."

Mr. Ellison said, "This merger works because we will have more customers, which increases our ability to invest more in applications development and support.''

Oracle's last bid had been for $9.2 billion, or $24 a share. PeopleSoft shares closed Friday at $23.95 on the Nasdaq Stock Market.