PeopleSoft acquires Vantive for $433M

Note: All monies in US Dollars

PeopleSoft Inc. made a move to bolster its product line today by purchasing Vantive Corp., a major player in the customer relationship management market.

For its $433 million, PeopleSoft, of Pleasanton, Calif., will get a CRM suite it can integrate with its enterprise resource planning offerings.

PeopleSoft has struggled this year to redevelop its applications for the Internet and to right what has been a precarious financial ship. In August, PeopleSoft unveiled a new suite of Web applications for ERP, but the company has lacked the type of CRM functionality that competitors such as Baan Co. and Oracle Corp. currently offer customers.

Vantive, of Santa Clara, Calif., offers a CRM suite that includes a Web-based customer service application. PeopleSoft will debut its CRM strategy early next year, officials said.

Also today, PeopleSoft officials said the company will likely report revenue of $290 million to $310 million for its third fiscal quarter when it announces earnings next week. That compares with revenue of $351 million in the third quarter of 1998.