Looking to extend its cloud computing platform, Oracle said it has entered into an agreement to acquire cloud-based talent management provider Taleo for $46 per share or approximately $1.9 billion, net of Taleo’s cash and debt.
Taleo’s talent management cloud is designed to help organizations attract, develop, motivate and retain human capital to improve performance and drive growth. The companies said that together they expect to create a comprehensive cloud offering for organizations to manage their human resource operations and employee careers.
Taleo’s board of directors unanimously approved the transaction, which is expected to close later this year.
Oracle looks to be following rival SAP, that recently acquired SuccessFactors, a provider of cloud-based human capital management solutions, as part of SAP’s strategy to extend beyond traditional enterprise resource planning, moving toward mobile, big data and cloud computing.
Related to the purchase, IDC noted it indicates that Taleo the action emphasizes the importance the ERPs are placing on cloud/SaaS delivery. “With Taleo, Oracle gets the leading talent acquisition offering and a respectable learning management system – neither of which are yet included in Oracle Public Cloud.  Beyond that there are overlaps across Taleo and Oracle’s other HCM products such as in employee performance management which is available across EBS, PeopleSoft, and Oracle Fusion Applications. Taleo will benefit from other Oracle technologies in the public cloud offering, not the least of which is the Oracle Social Network products, which could be integrated into Taleo. The roadmap will be a real challenge to articulate and understand,” said IDC’s analysts.
They have also draw comparisons to the SAP/SuccessFactors:
- SAP acquires a cloud champion and multi-tenant delivery framework. Oracle doesn’t get that in Taleo
- SAP hadn’t progressed too far with Business ByDesign for talent so suspending it will not have much impact. Oracle will need to stay the course with Oracle Fusion Applications
- Oracle gets the leading talent acquisition offering. SAP gets the leading performance management offering
- Talent acquisition is more highly penetrated than is performance management so in terms of current client footprint and cross-sell opportunity the nod goes to Oracle
>>>Follow RCR Wireless News – Americas on Twitter, Facebook and subscribe to our free periodic newsletters
