Oracle To Bid $5.1 Billion For PeopleSoft

Redwood Shores, Calif.-based Oracle said it would pay $16 per share for PeopleSoft, whose stock price closed at $15.11 in trading on June 5.

"The acquisition of PeopleSoft will immediately make Oracle an even more profitable and competitive company," Oracle Chairman and CEO Larry Ellison said in a statement. "Although we will not be actively selling PeopleSoft products to new customers, we will provide enhanced support for all PeopleSoft products. Furthermore, we will be incorporating the advanced features from the PeopleSoft products into future versions of the Oracle eBusiness Suite."

Earlier this week, on June 2, PeopleSoft said it would buy J.D. Edwards for $1.7 billion. It was not immediately clear how Oracle's bid for PeopleSoft would impact the J.D. Edwards transaction.

"Once Oracle's acquisition of PeopleSoft is complete, it will review whether, and on what terms, Oracle would support that transaction," Oracle said in the statement.

At press time, PeopleSoft did not issue a public response to Oracle's move.

Oracle said its tender offer for PeopleSoft will begin on June 9.