|
PeopleSoft takes Vantive
|
 |
October 11, 1999: 10:38 a.m. ET
Human resources software maker to acquire business support company
|
NEW YORK (CNNfn) - Human resources software maker PeopleSoft Inc. said Monday it has agreed to acquire Vantive Corp. in a stock deal valued around $433 million.
PeopleSoft said the deal will position the Pleasanton, Calif.-based company as a major player in customer relationship management marketing. Santa, Clara, Calif.-based Vantive (VNTV) makes software that lets businesses automate customer support, sales and other functions.
Shares of PeopleSoft (PSFT) rose 3/8 to 17-5/8 in Monday morning trading. Vantive (VNTV) shares were up 3-11/16 to 12-5/8.
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 Oct. 8, the aggregate value of the transaction is approximately $433 million.
The transaction has been approved by the boards of both companies and is subject to shareholder approval and customary closing conditions. The merger is expected to close in the first quarter of 2000.
PeopleSoft, which specializes in network-based software, is scheduled to release third quarter financial results on Oct. 19. The company said it expects third quarter earnings to be about break-even to two cents per share. Analysts polled by First Call Corp. expect the company to earn 1 cent per share.
|
|
|
|
|
|
PeopleSoft
Vantive
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
