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Peregrine Systems, Inc. was an enterprise software company that sold solutions in the enterprise asset management, change management, and ITIL-based IT service management markets. It was founded in 1981 and, by 2000, had achieved market dominating position in these areas. Following an accounting scandal and bankruptcy, Peregrine was acquired by Hewlett-Packard in 2005.
[edit] HistoryPeregrine Systems was founded in 1981 in Irvine, California. The original founders and employees were Chris Cole, Gary Story, Ed Beck, Kevin Keyes and Richard Diederich. They started selling PNMS on a Series One computer while developing an MVS version. Peregrine conducted business from offices in the Americas, Europe, and Asia Pacific. Paradyne acquired the product to implement a "side-stream" management solution to offer the market. The company was developing an MVS version of the software named PNMS II. After the initial success in marketing and selling this product, Peregrine grew to become one of the leaders in the early days of the software industry. In the mid-80's Peregrine began relationships with venture capital firms and eventually was acquired by John Moores, founder of BMC Software in the late 1980s. Peregrine grew its product line rapidly both organically and via acquisitions, including Harbinger Corporation and Remedy Corporation. From 1999 to 2001, the rate of acquisitions increased to almost one company a quarter. This rate of acquisition and the ever evolving company strategy caused confusion both inside the company and within the customer base, damaging the organization's ability to execute a clearly defined and consistent product roadmap. The publicly announced ROME product convergence roadmap was the most high profile victim. [edit] ScandalIn 2002, an accounting scandal forced Peregrine into bankruptcy and resulted in criminal indictments for 11 senior managers. None of these eleven managers included the original founding members. In 2003, Peregrine was charged with "massive fraud"[1] by the U.S. Securities and Exchange Commission for allegedly falsifying sales and exaggerating revenue, then covering up the scheme by hiding losses as 'goodwill costs relating to acquisitions'.[citation needed] As a result of an audit by BMC, who was interested in buying the company, Peregrine's leadership decided to cover up their schemes while selling off their Peregrine stock. This (along with other scandals) eventually led to the demise of Arthur Andersen, who aided those executives involved in the deceptions in the cover up.[citation needed] Much like Enron, the fraud eventually led to many outside investors and Peregrine employees, who invested their earnings in Peregrine's internal stock plan, losing thousands of dollars. The entire amount of shareholder equity lost was over $4 billion dollars.[citation needed] The majority of Peregrine's illegal schemes were devised by the CFO, Matthew Gless and CEO Stephen Gardner.[citation needed] Both pleaded guilty to fraud charges. Common speculation is that federal prosecutors are using Gless's and Gardner's cooperation to build a case against former chairman of the board and San Diego Padres owner John Moores who sold over $800 million of shares during Peregrine's fraudulent period.[citation needed] [edit] Sentences
Charges dismissed after mistrials:
[edit] BankruptcyPeregrine filed for Chapter 11 protection on September 23, 2002 after laying off the majority of its employees ([2]). The company sold the Remedy division of the company to BMC Software for over $300 million dollars[3] and used the funds to pay the majority of the company's debt. Peregrine exited Chapter 11 reorganization in August 2003 but the Board of Directors fired the CEO, Gary Greenfield. Retired software executive John Mutch took over and eventually he sold the company for a little more than two times revenue to HP. [edit] Sale to HPHewlett Packard acquired Peregrine Systems in 2005 for $425 million.[4] The Peregrine products are now sold under the HP Business Technology Optimization (BTO) Software brand and is part of the HP Software Global Business Unit. [edit] Products
[edit] LogoThe company logo was first used in March 2001 to illustrate Peregrine Systems expansion into full business to business process management (this change to core strategy followed the acquisitions of the B2B companies Harbinger and Extricity). The logo was accompanied at the launch with the tagline 'Frictionless Business' symbolizing the removal of inefficiency and friction from business processes, the logo was subsequently used as inspiration for the rebrand of the internal serviceDesk at Peregrine under the name 'Frisbee'. [edit] References[edit] External links |
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