Skip to content
Subscriber Only

Just How Much Did John Moores Know?

Peregrine's chairman says he wasn't aware of any financial irregularities. But he cashed out

Larry Garlick says he distrusted venture capitalist John J. Moores from the moment they met in 1991. Garlick was founder of Remedy Corp., a hot Silicon Valley software startup. Moores, a big-shot tech entrepreneur who had launched BMC Software Inc. (BMC ) and chaired Peregrine Systems Inc. (PRGNE ), swaggered into Garlick's office and made an offer to invest in Remedy, Garlick recalls. Put off by behavior that he felt was overbearing, Garlick turned down the offer.

Last year, Garlick changed his mind--with reservations--after Peregrine made him a generous offer to buy Remedy for $1.2 billion in cash and stock. He wondered how Peregrine's core computer-support software business could grow at a peppy 25% per year while many other software companies were faltering. Peregrine execs credited their products and crack sales team. Still, Garlick adds: "I was skeptical."