Software vendor Peregrine to buy rival Remedy

Peregrine Systems Inc., which develops a mix of asset management and business-to-business software, today announced that it has agreed to buy rival Remedy Corp. in a combined cash-and-stock deal valued at more than $1 billion under their current share prices.

San Diego-based Peregrine said the deal is aimed at extending the depth and scope of its product line. It added that the acquisition will also match Remedy’s base of small and midsize users with Peregrine’s roster of larger enterprise-level customers and give the latter group access to Remedy’s line of highly customizable applications.

As part of the deal, Peregrine will pay about $275 million in cash and issue 27.9 million new shares of its common stock in order to buy Mountain View, Calif.-based Remedy. The agreement has been approved by the boards of directors of both companies but still needs to be voted on by Remedy’s shareholders.

Remedy’s IT Service Management suite will become the combined company’s flagship package for smaller users after the deal is completed, Peregrine said, adding that its own help desk products will continue to be targeted at large companies. Peregrine also said it plans to combine its IT infrastructure management products with Remedy’s business process authoring technology.

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