PeopleSoft Inc. says it has formed a research anddevelopment company focused on creating electronic-business, analytic, and industry-specific applications.
Momentum Business Applications Inc. is expected to go public on the Nasdaq market sometime next month. PeopleSoft says it will contribute $250 million to $300 million to the company prior to its initial public offering. Aneel Bhusri, PeopleSoft's senior VP of product strategy, will be interim president of Momentum until a full-time leader is named.
The company is not expected to hire any employees. Instead Momentum will contract with PeopleSoft and other third parties to conduct R&D activities, with PeopleSoft retaining an option to license any products or technologies that result. PeopleSoft will also have the right to purchase all Momentum shares at a price to be determined.