PeopleSoft to buy J.D. Edwards

PeopleSoft Inc. is planning to purchase enterprise software firm J.D. Edwards for $1.7 billion in stock.

The synergy between the two companies should benefit both mid- and large-sized customers throughout government, said Steve Swasey, PeopleSoft's director of corporate public relations. The company is still analyzing the various synergies it will derive from the acquisition, so Swasey would not comment on the effect on specific agencies or work.

PeopleSoft provides software and solutions to 350 federal, state and local government agencies and 650 higher education institutions. At the federal level, the company provides software to 13 of the 15 cabinet-level agencies, Swasey said.

Under the terms of the agreement, J.D. Edwards' stockholders will receive 0.86 PeopleSoft common shares for each outstanding J.D. Edwards common share. When combined, the two companies will have about $2.8 billion in annual revenue, 13,000 employees and more than 11,000 customers in 15 countries.