Oracle Acquires Taleo

Oracle announced today its acquisition of Taleo, a human resource technology company, for $1.9 billion.  The transaction took place in response to SAP’s acquisition of SuccessFactors, which occurred this past December.  Both Oracle and SAP were seeking to build out their cloud-based business – cloud software is becoming increasingly popular because it’s far less expensive and easier to implement. In addition, the transactions were meant to act as a buffer for lost sales to Workday, which recently announced its IPO.  Since the announcement, Taleo shares have increased 18 percent, landing at $46 per share.  Many experts in the space believe that more consolidation will occur within the industry over the next few years…Plan accordingly!