Oracle and PeopleSoft have signed a deal that will see Oracle acquire its rival for about $10.3 billion, bringing to end an ownership battle that lasted 18 months.
Oracle has agreed to increase its offer to $26.50 per share in cash from Wednesday. The offer will remain open to 28 December unless extended in accordance with the merger agreement.
Oracle`s last offer was $24 a share, or $9.2 billion.
"After careful consideration, we believe this revised offer provides good value for PeopleSoft stockholders and represents a substantial increase in value from October," says George Battle, chairman of PeopleSoft`s transaction committee.
He adds that "this has been a long, emotional struggle".
"This merger works because we will have more customers, which increases our ability to invest more in applications development and support," says Oracle CEO Larry Ellison.
"We intend to immediately extend and improve support for existing JD Edwards and PeopleSoft customers worldwide."
Ellison says that on an adjusted pro forma basis, the merger is expected to add a cent to earnings per share in the fourth quarter.
It is expected to add 2c a quarter, or 8c a year, in the 2006 financial year and "a bit more" in the 2007 financial year.
Oracle and PeopleSoft have also agreed to stay all pending litigation and dismiss the lawsuits permanently after the consummation of the offer.
Oracle SA cannot comment on the merger and PeopleSoft SA country manager Mike Evans was out of the office at the time of publication.
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