Oracle Corp. offered to buy all outstanding shares of CRM software provider PeopleSoft last week for $5.1 billion, or about $16 per share, in a move that may abort PeopleSoft's acquisition of J.D. Edwards & Company.
The buyout offer begins today, according to Oracle, Redwood Shores, CA. Oracle said it would not actively sell PeopleSoft products to new customers if the takeover were successful, though it would provide support for existing PeopleSoft products and incorporate PeopleSoft software features into future releases of its Oracle eBusiness Suite.
In announcing the takeover bid, Oracle noted that PeopleSoft's purchase of J.D. Edwards is not scheduled for completion until the fall. “Once Oracle's acquisition of PeopleSoft is complete, it will review whether, and on what terms, Oracle would support that transaction,” the company said in a statement.
Both Oracle and PeopleSoft compete against business software provider SAP, and the takeover could strengthen Oracle's position in the business applications market.
