PeopleSoft picks a pepper
PeopleSoft announces it will acquire Red Pepper Software in a stock transaction worth $225 million.
PeopleSoft (PSFT), a client-server business software maker, will issue new shares of common stock to holders of Red Pepper's stock and options. Red Pepper will continue to operate as a wholly owned subsidiary.
The acquisition gives PeopleSoft a further edge in its efforts to be the leader in enterprise resource planning. PeopleSoft also hopes to exploit Red Pepper's experience in manufacturing and supply chain management. Red Pepper's in-memory software allows companies to plan their manufacturing and distribution from scheduling production to determining how should inventory move through the distribution channel.
"Red Pepper has the best planning and optimization technology on the market," said Dave Duffield, president and CEO of PeopleSoft. "After working together for more than a year, we know that both companies share a common vision for the future of enterprise applications, and have similar corporate cultures and company values."
The deal is also advantageous to Red Pepper which wanted to find a buyer that shared its goals and offered deep pockets. The company, founded in 1993, began shipping its first products in March last year.
"We'll be a strong player with the financial resources of PeopleSoft," said David Obershaw, marketing director.
The deal is expected to close by the end of the year.