) to neutral from outperform.
PeopleSoft is acquiring business software rival J.D. Edwards in a deal valued at about $1.7 billion. Analyst Patrick Snell says the combined company will have revenue of $2.8 billion with 11,000 customers and 13,000 employees.
Snell says the combination looks fairly complementary from a product and customer perspective; however, significant operational execution undoubtly lies ahead. He says based on Friday's closing price for PeopleSoft, that implies a $14.10 price for J.D. Edwards -- a 19% premium from Friday's close.