Oracle-PeopleSoft Resolved: Implications for Australia and New Zealand

After 18 months of lawsuits, accusations, claims, and counterclaims, Oracle Corporation's unsolicited takeover attempt on PeopleSoft Inc. reached a surprisingly peaceful conclusion on December 13, 2004. After over-the-weekend negotiations, the firms announced a deal for US$10.3 billion or US$26.5/share, a US$2.5/share premium over Oracle's "best and final" offer of US$24/share. Both firms agreed to stay any litigation during the consummation of the deal and to dismiss such litigations after the deal consummation. The coming to terms by Oracle and PeopleSoft marks a turning point in the slowly consolidating enterprise software market, which IDC will explore in additional in-depth research over the coming months. In the meantime, why did PeopleSoft defer to Oracle after 18 months of tenacious defense? How will Oracle integrate PeopleSoft from an organizational and product standpoint? And how does the pending merger impact customers and investors?