Oracle to buy PeopleSoft Bangalore unit

Oracle, the enterprise software company, is acquiring PeopleSoft development centres in Bangalore for an undisclosed amount. The acquisition of the two centres, which are operated by Hexaware and Covansys will be complete by October 2005.

Oracle group's vice- president Motasim Najeeb said, "We are acquiring a world-class development team that Hexaware has successfully built and operated. We look forward to a continued partnership with Hexaware."

Oracle's media release stated that the purchase options, originally granted under agreements entered into by PeopleSoft with these companies in 2003, were acquired by Oracle in connection with the acquisition in January this year.

The release also said that the employees of both these centres will be retained and are expected to be employed by Oracle. Hexaware Technologies in its release further said that Oracle has exercised its option to acquire India Service Centre (ISC) under the terms of the build operate and transfer (BOT) agreement between Hexaware and PeopleSoft.

According to the release, the company will continue its relationship with Oracle as services partner and will continue to grow its direct PeopleSoft and Oracle services practice.