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To: Amsterdam who wrote (3063)	10/11/1999 10:09:00 AM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 6974

misery loves company? ----- PeopleSoft to buy marketing software maker Vantive October 11, 1999 08:50 AM NEW YORK, Oct 11 (Reuters) - Business management software maker PeopleSoft Inc. (PSFT) on Monday said it agreed to buy Vantive, a money-losing maker of software used by companies to improve customer service, in a stock deal worth $433 million. The deal coincides with Santa Clara, Calif.-based Vantive's announcement that it expected to report a net loss for the third quarter between 16 cents and 18 cents a share -- well below Wall Street's break-even consensus forecast, according to First Call/Thomson Financial, which surveys brokerage estimates. Vantive said it also planned to take a pre-tax restructuring charge of about $1.5 million, resulting in an additional net loss of 5 cents per share. Following the news, Vantive shares vaulted 45 percent higher to 12-15/16, up 4 points from Friday's close. Meanwhile, PeopleSoft shares gained 1/2 point to $17-3/4. Both trade on the Nasdaq stock market. Separately, PeopleSoft of Pleasanton, Calif. said it expected earnings in line with current analysts' expectations of between break-even and a profit of 2 cents per share. The First Call consensus estimate was for 1 cent per share. PeopleSoft said it expects revenues of $290 million to $310 million. Vantive said it expected software license revenue to be about $16.5 million. The merger deal will be structured as a tax-free exchange of stock at a fixed ratio of 0.825 shares of PeopleSoft common stock for each outstanding share, warrant, and option of Vantive. It is expected to be accounted for as a pooling of interests. Based upon PeopleSoft's closing stock price of $17.25 on Friday, the aggregate value of the deal is about $433 million. The transaction, which has been approved by the boards of each company, is subject to the approval of Vantive's stockholders and customary closing conditions including U.S. antitrust regulatory approval. The merger is expected to close in the first quarter of 2000. Building upon a long-term partnership in which several products from the two companies have been integrated already, PeopleSoft said it will now fully combine Vantive's customer marketing systems into PeopleSoft's own software. The combination joins PeopleSoft with 3,000 corporate customers, and Vantive, with 850 customers.