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Mon 13 Dec 2004 04:00 AM

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PeopleSoft finally gives in to Oracle for US$10.3 billion

After 18 months of courtroom dramas, Oracle Corporation today announced that it has signed a definitive merger agreement to acquire PeopleSoft, for approximately US$10.3 billion. The transaction has been approved by the boards of directors of both companies and should close by early January.

After 18 months of courtroom dramas, Oracle Corporation today announced that it has signed a definitive merger agreement to acquire PeopleSoft, for approximately US$10.3 billion. The transaction has been approved by the boards of directors of both companies and should close by early January.

Prior to the merger, PeopleSoft was the world's second largest provider of enterprise application software with 12,750 customers in 150 countries.

"Today we announced both a great quarter and the agreement to acquire PeopleSoft. This merger gives Oracle even more scale and momentum," says Oracle chief executive officer Larry Ellison. "The real highlight of our most recent quarter was the 57% growth in our applications business, and this merger is going to make that business bigger and stronger."

"This merger works because we will have more customers, which increases our ability to invest more in applications development and support. We intend to enhance PeopleSoft 8 and develop a PeopleSoft 9 and enhance a JD Edwards 5 and develop a JD Edwards 6. We intend to immediately extend and improve support for existing JD Edwards and PeopleSoft customers worldwide," adds Ellison.

The US$10.16 billion Oracle will continue to support PeopleSoft's customers and products and intends to develop and introduce a next generation of PeopleSoft products—PeopleSoft 9 in 2005.

While Oracle customers will see development of the E-Business Suite applications continue on the current schedule, they will see the incorporation of the best PeopleSoft product features and capabilities as well as from a larger combined applications development budget said the enterprise application vendors.

Further details and comments on product overlaps; potential for layoffs; restructuring details and effect on global operations including the Middle East were yet to be disclosed by the software vendors as on Monday.

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