Peregrine Nabs Remedy for $1.08 Billion
Updated · Jun 11, 2001
San Diego-based enterprise software maker Peregrine Systems Monday moved to
acquire IT Service Management and Customer Relationship Management (CRM)
provider Remedy Corp. in a cash and stock transaction valued at $1.08
billion based on Remedy’s closing price Friday.
Peregrine said the acquisition, which has already been approved by the
boards of both companies, will extend its scope, depth and reach. The
company is hoping the addition of Remedy’s technology will advantageously
position it to capture the small to midsize business market.
Under the terms of the agreement, Peregrine will acquire all Remedy’s
outstanding equity for a combination of cash and shares of Peregrine stock.
Peregrine (NASDAQ:PRGN) will issue Remedy (NASDAQ:RMDY)
shareholders 0.9065 Peregrine shares and $9 for each share of Remedy. The
company said it expects to issue about 27.9 million shares as part of the
transaction, which it will account for under the purchase method.
Peregrine expects to be off and running once the acquisition is finalized.
It anticipates that the transaction will be accretive to cash earnings in
the current fiscal year.
“We are delighted to reach agreement with Remedy on an acquisition that will
allow us to serve a broader range of customers with an expanded line of
products and development platforms,” said Steve Gardner, chairman and chief
executive officer of Peregrine. “We plan to enhance and integrate Remedy
technologies as part of our lifecycle infrastructure management offerings to
meet growing market demand for these capabilities. In addition, Remedy
contributes a powerful distribution channel to small and midsize customers.
We stand committed to supporting that channel, ensuring that customers
achieve the same competitive benefits we offer in helping larger enterprises
achieve a state of frictionless business.”
Peregrine has already laid out plans as to how it will integrate Remedy’s
technologies. It noted that Remedy’s development environment is highly
adaptable and flexible — a must for customers seeking a highly customized
offering — while Peregrine’s applications provide best practice workflow
for enterprise customers. The combined company will offer a unified
technology platform including Remedy’s Action Request System (AR System)
development environment and Peregrine’s open architecture and B2B
Integration suite. The company also plans to integrate the AR System with
its Infrastructure Management, Employee Relationship Management and B2B
Relationship Management products.
Still, the company will keep two separate product lines. Remedy’s IT Service
Management suite will be the company’s flagship solution for the
small-to-midsize market while Peregrine products will remain aimed at large
The transaction is still subject to shareholder and regulatory approval. The
companies’ did not disclose when the deal is expected to close.