PeopleSoft to acquire SkillsVillage

PeopleSoft has announced a definitive agreement to acquire Californian-based SkillsVillage.

The combination of these two companies will result in the industry`s only pure Internet collaborative solution that automates a company`s entire services procurement process. Customers gain complete management control over spending on all services, and can automate procurement of services from requisition to payment and enable real-time collaboration between themselves and their services suppliers.

"The corporate spend on services is one of the largest expense line items in enterprises today," says PeopleSoft President and CEO, Craig Conway. "The financial benefits of automating services far outweigh the benefits derived from automating other types of procurement such as Maintenance, Repair and Operation (MRO).

"PeopleSoft, already a leader in the ESA market, added more than 50 new customers in the first quarter of 2001. Our position in Human Resources Management, eProcurement and Supply Chain Management gives us a huge competitive advantage," Conway adds.

"Together, SkillsVillage and PeopleSoft represent the first truly viable vendor in our market," says SkillsVillage CEO Chris Wong. "Combined with PeopleSoft`s solutions in Human Capital Management, ESA, and eProcurement, we will become the first major enterprise vendor to deliver a full end-to-end solution for the entire services supply chain."

"PeopleSoft again has seized an opportunity to set a trend in the industry," says Bruce Richardson, senior vice president, AMR. "They recognise the business imperative today for companies to improve profits, increase efficiencies and reduce costs. Acquiring SkillsVillage vaults PeopleSoft into the leading position in the very lucrative services automation market while other MRO vendors are struggling to survive."

The transaction will be affected by the exchange of PeopleSoft stock and cash for all of the outstanding stock of SkillsVillage. It is subject to customary closing conditions, including compliance with applicable regulatory requirements. The acquisition is scheduled to close on May 31, 2001. SkillsVillage was founded in 1999. It is a privately held company.