PeopleSoft, developer of enterprise application software, will acquire Vantive in a stock for stock transaction.
PeopleSoft and Vantive, a California-based customer relationship management solutions provider, say clients will benefit from the combined company`s ability to offer a comprehensive e-business solution.
The merger will be structured as a tax-free exchange of stock at a fixed ratio of .825 shares of PeopleSoft common stock for each outstanding share, warrant and option of Vantive, and is anticipated to be accounted for as a pooling of interests.
Based upon PeopleSoft`s closing stock price of $17.25 on 8 October, the value of the transaction is about $433 million. The transaction has been approved by the companies` boards and is expected to close in the first quarter of 2000 subject to certain conditions being met.
PeopleSoft will unveil a combined product strategy for customer relationship management in early 2000.
PeopleSoft`s fiscal third quarter results will be released on Tuesday, 19 October. The company expects to report total revenue in the range of about $290 million to $310 million. The resulting third quarter earnings are expected to break-even to earnings of $0.02 per share.
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