PeopleSoft to buy J.D. Edwards

PeopleSoft Inc. has agreed to acquire another software firm, J.D. Edwards & Co., forming the world's second largest enterprise applications software company, the two companies announced today.

The deal, to be paid in stock to J.D. Edwards shareholders, is valued at about $1.7 billion, based on PeopleSoft's May 30 closing stock price.

The two companies combined will have about $2.8 billion in annual revenues, 13,000 employees and more than 11,000 customers in 150 countries.

Edwards will become a wholly owned PeopleSoft subsidiary. The boards of the two companies have approved the deal, but shareholders still must vote.