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Peregrine buying Remedy
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June 11, 2001: 7:09 a.m. ET
Software maker to pay about $1.1B in cash and stock for rival
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NEW YORK (CNNfn) - Peregrine Systems Inc. agreed Monday to buy rival software maker Remedy Corp. for about $1.1 billion in cash and stock in a move to expand its software business to serve both small and medium-sized businesses.
Under the deal, Peregrine, which makes management software, said Remedy shareholders will get $9 in cash and 0.9065 share of Peregrine common stock for each share of Remedy stock owned -- or about $35.12 based on Friday's closing prices. That's roughly double Remedy's (RMDY: Research, Estimates) closing price of $18.34 Friday.
Peregrine, based in San Diego, specializes in management and e-commerce software. Remedy, based in Mountain View, Calif., provides information technology management software.
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"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," Peregrine (PRGN: Research, Estimates) Chairman Steve Gardner said in a statement.
Peregrine said it expects to issue 27.9 million shares in connection with the deal, which should add to earnings excluding one-time items in the current fiscal year, the company said.
Peregrine stock fell $1.24 to $28.81 Friday while Remedy lost 36 cents to $18.34. 
-- from staff and wire reports
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