The $1.7bn (£1bn) deal will give the combined group more than 11,000 customers in 150 countries.
"The combination of JD Edwards and PeopleSoft is a winning one for customers. Both midsized and large enterprise customers will have access to the broadest suite of integrated enterprise software applications in the world," said PeopleSoft president and chief executive officer Craig Conway.
Conway said that PeopleSoft had a strong enterprise portfolio with a focus on HR and financials, while JD Edwards was strong in the mid market.
The merger would provide PeopleSoft with JD Edwards' skills in manufacturing and the AS/400 platform, he added.
Writing earlier this year, Giga analyst Byron Miller noted that, "JD Edwards is re-emerging as the clear midmarket leader in its chosen industries: manufacturing and distribution, asset intensive, and projects and services.
"It remains the only one of the tier-one ERP [enterprise resource planning] vendors (SAP, Oracle, PeopleSoft, JD Edwards) to be fully focused on the midmarket."
PeopleSoft's Conway admitted the merged company would have some product overlaps but said there was very little overlap among users. However, he did note that in the last quarter a third of new PeopleSoft customers were mid-market companies.
JD Edwards UK customers include oil giants Shell and BP, pharmaceutical company SmithKlineBeecham, building firms Miller Construction and Foster Wheeler, and services company WS Atkins