Called Momentum Business Applications, the new company will focus on quickly developing technology for such hot areas as e-commerce, analytic applications, and industry-specific applications.
As a result of the split, all of Momentum's Class A Common Stock will be
distributed to
The move should help Peoplesoft financially by allowing the
company to unload its expensive R&D costs from its accounting books. Also,
Momentum could help the Pleasanton, California-based firm better
compete with rivals like SAP and
Oracle on major technology fronts by infusing additional entrepreneurial
energy into PeopleSoft's research and development. Yet analysts say
Peoplesoft will need to manage competition between its own internal R&D
organization and that of Momentum's.
Ron Codd, PeopleSoft's current CFO, has been named CEO of Momentum.
Codd joined PeopleSoft in 1991, as its CFO. As Momentum's CEO, he will be
responsible for managing the company's operations, including all
development initiatives. Under PeopleSoft's agreement with Momentum, the
company has exclusive licensing rights to all products developed by
Momentum, and an option to puchase all the company's shares.
Alfred J. Castino will replace Codd as CFO. Castino joined
PeopleSoft in 1997 as VP of finance and corporate controller, most recently
holding the post of senior vice president of administration and finance.
With his new role, he adds investor relations to his current with
responsibilities, which include finance, legal, human resources,
information systems, and facilities.
PeopleSoft's shares were trading this morning at 18.25 a share, down 0.25.
Discuss: PeopleSoft spins off R&D unit
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