Peregrine Systems

Peregrine Systems, Inc. was an American enterprise software company focused on managing information-technology environments and related business processes. Founded in 1981 in Irvine, California, the company initially developed Peregrine Network Management System, a network-management product that began on Series One computers and later acquired client/server capabilities for MVS environments. Over time, Peregrine broadened its portfolio from network management into enterprise asset management, service-desk operations, change management, infrastructure discovery, knowledge management, data integration, facilities management, fleet administration, supply-chain enablement, and other operational applications. The company’s best-known software lines included AssetCenter, an enterprise IT-asset-management application acquired from Apsylog; ServiceCenter, an internally developed ITIL-oriented service-management platform; and Connect-It, a data-integration tool. Peregrine also marketed products such as Enterprise Discovery, Knowlix-based knowledge-management applications, InfraCenter, Get-Services, Get-Resources, and Get-Answers. Through acquisitions and portfolio expansion, the company attempted to position itself as a broad provider of business technology optimization and IT service-management software rather than a narrow network-management vendor. Peregrine expanded internationally, maintaining operations in the Americas, Europe, and Asia-Pacific. Its acquisition strategy included Harbinger Corporation in 2000 and Remedy Corporation in 2001. The Remedy transaction gave Peregrine control of the Remedy Action Request System and related customer-support and business-process software, although the division was later sold to BMC Software during Peregrine’s financial restructuring. The company’s growth was undermined by accounting misconduct that inflated reported revenue and, according to regulators and prosecutors, helped support an overstated stock price. Peregrine filed for Chapter 11 bankruptcy protection on September 23, 2002, after cutting approximately 1,400 jobs. Its common stock was ultimately cancelled, and shareholders lost billions of dollars in equity. Peregrine emerged from Chapter 11 in August 2003, but the reorganized company was substantially smaller and divested numerous businesses and product lines. The legal consequences continued for years. The U.S. Securities and Exchange Commission brought a civil enforcement action, while a federal investigation led to criminal charges against former executives, an outside auditor, and business partners. Former chief financial officer Matthew Gless pleaded guilty, and former chief executive Stephen Gardner was later sentenced to 97 months in prison. Other former employees and associated individuals received prison terms, probation, home detention, civil penalties, or other sanctions. Former chairman John Moores was not found to have sufficient proven knowledge of the fraud in litigation concerning his share sales. Hewlett-Packard acquired Peregrine Systems in 2005 for $425 million. The surviving products were integrated into HP’s IT management software portfolio, with AssetCenter marketed as HP AssetManager and ServiceCenter as HP Service Manager. Following the later combination of HP’s software business with Micro Focus and Micro Focus’s acquisition by OpenText in 2023, the products’ commercial lineage continued through successor enterprise-software portfolios, but Peregrine Systems itself no longer operates as an independent brand.

Peregrine Systems was established in 1981 in Irvine, California, by Chris Cole, Gary Story, Ed Beck, Kevin Keyes, and Richard Diederich. Its early product was Peregrine Network Management System, initially developed for Series One computers while the company worked on an MVS version. Client/server MVS versions became available in 1995, helping the company move toward larger corporate environments. The business gradually expanded beyond network administration. It developed software for IT asset control, service-desk management, change management, infrastructure discovery, knowledge management, facilities operations, and related enterprise processes. AssetCenter, obtained from Apsylog, became an important asset-management product, while ServiceCenter became its principal internally developed IT service-management platform. Connect-It addressed data integration, and the company also marketed discovery, employee self-service, resource-request, and knowledge applications. Peregrine grew both organically and through acquisitions. Harbinger Corporation was acquired in 2000, adding supply-chain enablement capabilities. Remedy Corporation followed in 2001, bringing the Remedy Action Request System and associated customer-support and business-process software into the portfolio. The company operated across the Americas, Europe, and Asia-Pacific. John Moores, a technology investor and founder of BMC Software, joined the board in 1989 and served as chairman during much of the company’s expansion. The company’s expansion was accompanied by serious accounting problems. In 2002 Peregrine disclosed circumstances that led to a collapse in confidence, significant layoffs, and a Chapter 11 filing on September 23. Approximately 1,400 employees were laid off, representing nearly half of the workforce. The company’s common stock was cancelled during the bankruptcy process, causing shareholders to lose more than $4 billion in equity according to the reference account. Peregrine also sued Arthur Andersen, alleging that audits had permitted revenue overstatements in fiscal years 2000 through 2002. Peregrine exited Chapter 11 in August 2003 after selling or separating multiple businesses. The Remedy division went to BMC Software, while other assets and product lines were divested to various buyers. Gary Greenfield departed as chief executive, and John Mutch became president and CEO. Regulatory and criminal proceedings continued: the SEC alleged a large-scale scheme to inflate revenue and the share price, and a federal grand jury later charged former executives, an auditor, and business partners. Matthew Gless pleaded guilty, while Stephen Gardner and several other former officers and associates received criminal or civil penalties. Appellate proceedings did not establish sufficient evidence that former chairman John Moores knowingly participated in the fraud. In 2005 Hewlett-Packard acquired Peregrine Systems for $425 million. HP renamed or integrated several products, including AssetCenter as HP AssetManager and ServiceCenter as HP Service Manager. The Peregrine product lineage later passed through the HP Software organization, Micro Focus after its combination with the relevant HP software business, and OpenText after its 2023 acquisition of Micro Focus. Peregrine Systems itself is defunct, but parts of its technology and product heritage continued in successor IT-management portfolios.

1. 2005Acquired by Hewlett-Packard

   HP acquired Peregrine and integrated its products into HP’s IT management software portfolio.

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2. 2003Company exits Chapter 11

   Peregrine completed its reorganization and appointed John Mutch as president and CEO.

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3. 2002Chapter 11 filing

   Peregrine filed for bankruptcy protection after layoffs and the disclosure of accounting irregularities.

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4. 2001Remedy Corporation acquired

   Peregrine acquired Remedy and added the Remedy Action Request System to its enterprise software portfolio.

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5. 2000Harbinger acquired

   The acquisition expanded Peregrine’s supply-chain and business-process software portfolio.

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6. 1995MVS client/server products introduced

   Client/server versions of Peregrine Network Management System became available for MVS environments.

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7. 1981Company founded

   Peregrine Systems was founded in Irvine, California, and began developing network-management software.

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Enterprise IT service management, asset management, and business technology operations software

• AssetCenterEnterprise asset management

  An enterprise software platform for tracking and managing IT assets and related configuration information. Acquired from Apsylog, AssetCenter became one of Peregrine’s principal asset-management offerings and was later marketed by Hewlett-Packard as HP AssetManager.

• ServiceCenterIT service management

  Peregrine’s flagship internally developed service-management application. It supported ITIL-oriented service-desk, incident, problem, change, and related operational workflows, and was subsequently sold by HP under the HP Service Manager name.

• Connect-ItData integration

  A data-integration tool designed to connect enterprise applications and synchronize information across technology-management environments. It was later incorporated into HP’s software portfolio as HP Connect-It.

• Enterprise DiscoveryIT discovery and inventory

  A discovery and inventory application intended to identify infrastructure components and provide information for enterprise asset and service-management processes.

• Remedy Action Request SystemBusiness process and customer support software

  The Remedy software suite supported automated business processes, customer support, and service requests. Peregrine obtained it through the 2001 Remedy acquisition and sold the division to BMC Software during its 2002 restructuring.

• KnowlixKnowledge management

  Knowledge-management technology acquired by Peregrine and used in products including Get-Answers. It supported the creation and retrieval of service and support knowledge for enterprise users.

• FacilityCenterFacilities management

  A computer-aided facilities-management product, together with the FacilityCenter Reserve room-booking application. These assets were divested during Peregrine’s financial collapse.

• Fleet AnywhereFleet management

  A software application for managing company vehicle fleets. The product was divested to Maximus during the 2002 restructuring period.

• 2005Acquisition by Hewlett-PackardM&A

  After reorganization and divestitures, Peregrine remained a provider of IT management software but no longer operated as an independent public company.

  What changed. Hewlett-Packard acquired Peregrine Systems and absorbed its products into HP’s IT management software business.

  Aftermath. The Peregrine name was replaced in major product branding by HP names such as HP AssetManager and HP Service Manager.

  Acquisition price. $425 million (2005)

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• 2002Chapter 11 restructuringOther

  Accounting allegations, layoffs, and the loss of market confidence left Peregrine unable to continue as a normally financed public company.

  What changed. The company filed for Chapter 11 protection, cancelled its common stock, and began selling divisions and product lines.

  Aftermath. Peregrine emerged from reorganization in August 2003 as a smaller company, with major assets divested and substantial shareholder value destroyed.

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• 2002Sale of Remedy division to BMC SoftwareM&A

  Peregrine sold important assets while undergoing bankruptcy restructuring.

  What changed. The Remedy division was sold to BMC Software for more than $300 million.

  Aftermath. BMC regained control of the Remedy product family, while Peregrine continued restructuring its remaining software operations.

  Transaction value. more than $300 million (2002)

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• 2004Federal indictment of former executives and associatesControversy

  A federal grand jury charged eight former Peregrine executives, an outside auditor, and two outside business partners with conspiracy connected to a multibillion-dollar securities-fraud case.

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• 2003Accounting and securities fraudControversy

  The SEC alleged that Peregrine engaged in a large-scale scheme to inflate revenue and its stock price. The allegations were followed by civil enforcement activity, bankruptcy-related losses, and criminal proceedings against former executives and associated parties.

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• 2005Hewlett-Packard acquires Peregrine Systems

  HP acquired Peregrine and incorporated its surviving products into HP’s IT management software portfolio.

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• 2002Peregrine sells Remedy division to BMC Software

  During its restructuring, Peregrine divested the Remedy business to BMC Software for more than $300 million.

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1. Peregrine Systems