Oracle said it is paying $10.3 billion, or $26.50 a share, for PeopleSoft - up nearly 11% from PeopleSoft's Friday close of $23.95.
Oracle also announced better-than-expected second-quarter earnings - a 32% increase in net income at $815 million, or 16 cents per share, in the second quarter ended November 30, 2004 when compared with $617 million, or 12 cents a share, in the year-ago period. Revenue was up 10% to $2.76 billion from $2.5 billion.
Larry Ellison, CEO of Oracle, said in a statement: "The real highlight of our most recent quarter was the 57% growth in our applications business, and this merger is going to make that applications business bigger and stronger."
