End of Peregrine Systems
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.
Peregrine 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 starting selling PNMS on a Series One computer while developing an MVS version.
Peregrine conducted business from offices in the Americas, Europe, and Asia Pacific.
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.
In 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”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’.
The company sold the Remedy division of the company to BMC Software for over $300 million dollarsand 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.
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