PeopleSoft to Buy Vantive

PeopleSoft Inc. agreed to buy Vantive, a money-losing maker of software used by companies to improve customer service, in a stock deal worth $433 million. The announcement coincided with Vantive’s disclosure that it expects to report a net loss for the third quarter of between 21 and 23 cents a share, largely because of a shortfall in software license sales in North America. The forecast was well below analysts’ consensus expectation of break-even earnings for the Santa Clara, Calif.-company, according to First Call Corp. Vantive software is used by companies to cull corporate databases to identify profitable customers and market new services to them. News of the deal, which amounts to a 59% premium to Vantive’s closing price Friday, sent the stock up as investors appeared to shrug off concerns over the earnings shortfall. Vantive closed at $11.94, up $3, or 34%. Shares of Pleasanton, Calif.-based PeopleSoft closed down 88 cents at $16.38. Both trade on Nasdaq. The merger would combine Vantive’s 600 employees with PeopleSoft’s 6,400-person work force.