Peregrine Systems Buys Smaller Rival

June 11, 2001
Asset-management software company Peregrine Systems Inc. today agreed to buy rival Remedy Corp. for $1.08 billion in cash and stock to gain access to its small and mid-size customers. Peregrine's software is also used by businesses to exchange goods, while Remedy makes help-desk and customer-service programs. Peregrine gains about 5,000 new customers through the purchase. “We know this is a relatively
Asset-management software company Peregrine Systems Inc. today agreed to buy rival Remedy Corp. for $1.08 billion in cash and stock to gain access to its small and mid-size customers.

Peregrine's software is also used by businesses to exchange goods, while Remedy makes help-desk and customer-service programs. Peregrine gains about 5,000 new customers through the purchase.

“We know this is a relatively large acquisition and as such will draw some skepticism,” Peregrine chairman & CEO Stephen Gardner said on a conference call. “We believe the risk/reward is very heavily tilted toward the reward.”

Shares of San Diego-based Peregrine fell $4.82, or 17%, to $23.99 in late morning trading. They had risen 46% this year. Mountain View, California-based Remedy rose $11.43, or 62%, to $29.77. The stock had risen 11% this year.

The acquisition is expected to close in late August or early September.

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!