CRM technology provider PeopleSoft Inc. said yesterday it would purchase rival technology firm J.D. Edwards in a transaction valued at $1.7 billion.
According to PeopleSoft, the merger creates the world’s second-largest provider of enterprise software. The combined companies will have $2.8 billion in annual revenues, 13,000 employees and 11,000 customers located in 150 nations.
J.D. Edwards will become a subsidiary of PeopleSoft under the merger. J.D. Edwards stockholders, who received 0.86 PeopleSoft shares for every share of J.D. Edwards stock they owned, will own approximately 25 percent of the merged company.
The merger will be completed in the late third or early fourth quarter of this year, PeopleSoft said.