Oracle Corp. (ORCL) completed its acquisition of Taleo. The deal adds leading talent management cloud capabilities to drive exceptional organization performance to Oracle's portfolio of products and services.
Taleo's leading cloud-based offerings support the talent management and recruiting efforts of some of the world's largest and most demanding companies, provides insight into how people strategies impact their businesses, deliver intuitive ease of use, scalability, and uptime, and will be key component of the Oracle Public Cloud.
The combination of Oracle's leading Fusion HCM products and Taleo's Talent Management offerings are expected to create comprehensive Cloud offering for organizations to find and develop the best people; align, promote and reward them; deliver intelligent analysis, and social and mobile capabilities to enable managers to make the right decisions quickly and effectively.
Nearly half of the Fortune 100, and over 5000 companies, rely on Taleo. Taleo's recruiting solutions processed 15 percent of last year's US hires. The firm is second to Salesforce (CRM).
Taleo hopes to use its legacy to fend off competitors Kenexa, and Success Factors which SAP is buying for $3.4 billion.
The relatively high unemployment rate could help reveunues, which were $291 million for the 12 months preceding October 2011. More companies than ever are now looking for talent management solutions to make sure their H.R. Departments don't drown in applications.
Oracle added Talent Management to its Cloud offerings which include Fusion ERP, Oracle Social Network, Fusion Sales and Marketing, Fusion Human Capital Management, Database Service, and Security Service.
Enterprises will be able to cut H.R. headcount as the process becomes automated and less personnel is utilized. Oracle adds to its services and ability to retain and attract customers.
Although Oracle investors will not be able to see much benefit immediately, the medium to long-term value creation for investors will be significant.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.