Alpha Gen Capital
Apr. 29, 2015, 3:02 PM
- After following markets lower most of today, enterprise cloud software vendors have jumped thanks to a Bloomberg report stating cloud CRM software giant Salesforce ($51B market cap) has been approached by a potential buyer, and is working with bankers to field offers.
- Gainers include Workday (WDAY +6%), ServiceNow (NOW +4.3%), NetSuite (N +4.3%), Marketo (MKTO +2.7%), Zendesk (ZEN +1.2%), Cornerstone OnDemand (CSOD +1.6%), Castlight (CSLT +2.4%), and Jive Software (JIVE +1.5%).
- Though the cloud software market has seen plenty of M&A activity, a Salesforce deal would easily be its largest. Workday ($17.5B market cap) is the second-largest enterprise cloud pure-play. ServiceNow ($11.6B) is #3.
Oct. 7, 2014, 5:58 PM
- Evolv's Selection app is described by the company as "a cloud-based assessment and predictive hiring application that continuously improves its ability to predict job applicant success across a variety of job types." The startup also offers Insights, a predictive analytics tool that allows companies monitor/analyze a workforce's performance.
- Cornerstone (NASDAQ:CSOD) is paying $42.5M in cash to acquire Evolv, as well as assuming $2M in debt and issuing up to 200K restricted stock units (current value of $6.6M).
- The company declares the acquisition will "enable Cornerstone to immediately deliver best-in-class machine learning and predictive analytics capabilities to complement Cornerstones organically-developed talent management suite."
- Cloud HR software giant Workday also offers workforce analytics tools. LinkedIn, meanwhile, has acquired Bright, an online jobs platform that uses analytics to help employers screen candidates.
Oct. 24, 2013, 12:09 AM
- Ahead of tomorrow's Q3 report, NetSuite (N) has struck a deal to acquire TribeHR, a developer of cloud HR apps aimed at SMBs. NetSuite plans to fuse the startup's offerings with its SMB-focused cloud ERP apps.
- "Really there has been no HR offering in the mid-market," states NetSuite CEO Zach Nelson (a little hyperbolically). He sees an intergrated ERP/HR solution allowing SMBs to do away with manual HR processes, and also talks up the value of TribeHR's social/collaboration tools.
- The purchase means NetSuite will compete more with Workday (WDAY), which leads the cloud HR market and also offers cloud ERP software. But Workday has a stronger focus on large enterprises. Ultimate Software (ULTI), Cornerstone OnDemand (CSOD), and Paylocity (reportedly eying an IPO) also compete in cloud HR.
- Separately, NetSuite and others see an opportunity for the company to poach clients from SAP's SMB-focused Business ByDesign cloud apps, which the German software giant has decided to pare its investments in. NetSuite has launched a Business ByDesign migration program.
- SAP has reportedly invested €3B in Business ByDesign development over 7 years, but the platform has never generated more than €23M/year in sales in 3 years of availability. Business ByDesign resources will be shifted towards SAP's Hana Cloud, which runs cloud apps on top of the popular Hana in-memory database.
Sep. 17, 2012, 4:37 PM
Oracle (ORCL) is acquiring SelectMinds, a developer of cloud apps for recruiting talent via referrals and social connections, and handling relationship with ex-employees. SelectMinds' software joins an arsenal of Oracle cloud HR solutions that includes its Fusion apps and Taleo. Remaining independent cloud talent management vendors include CSOD, SABA, and ULTI. (IBM-Kenexa) (SAP-SuccessFactors)| Sep. 17, 2012, 4:37 PM
Aug. 31, 2012, 5:39 PM
Saba Software (SABA +17.8%) closed with a huge gain on heavy volume. M&A speculation fueled by IBM's Monday deal to buy fellow cloud HR software firm Kenexa is almost certainly the reason. On Tuesday, B. Riley argued Saba could be sold at a hefty premium to a larger cloud player such as Salesforce.com or Workday, or an IT giant such as H-P or Dell. Peers Cornerstone OnDemand (CSOD +2%) and Ultimate Software (ULTI +1.1%) had more modest gains. (previous)| Aug. 31, 2012, 5:39 PM
Aug. 27, 2012, 9:18 AMIBM is buying cloud HR software vendor Kenexa (KNXA) for $1.3B, or $46/share. The price represents a 42% premium to Kenexa's Friday close. The acquisition follows SAP and Oracle's purchases of peers SuccessFactors and Taleo, and comes as Workday, another big name in the space, prepares an IPO. Cornerstone OnDemand (CSOD), a cloud HR name that hasn't found a buyer yet, could trade higher on the news. IBM expects the acquisition to close in Q4. (PR) | Aug. 27, 2012, 9:18 AM | 1 Comment
Mar. 8, 2012, 4:59 PM
Cornerstone OnDemand (CSOD +6.2%), which surged today along with many other high-beta tech names, says it's acquiring Sonar6, a New Zealand-based provider of cloud HR software for small businesses, for $14M. Cornerstone pledges to keep Sonar6's products, which are currently used by over 375 companies, separate from its own cloud HR offerings, which are targeted at larger firms.| Mar. 8, 2012, 4:59 PM
Feb. 9, 2012, 1:31 PM
After surging in the wake of Oracle/Taleo, some cloud software names have sold off: CSOD +1.2%. CTCT -1%. N -0.2%. Others are faring better: SABA +5.7%. CRM +3%. KNXA +2.4%. Bernstein thinks Oracle's modest premium, perhaps due to a limited number of potential buyers, "puts a cap" on future deal valuations. However, as Nomura notes, the run-up already seen in Taleo due to M&A hopes helps explain the small premium.| Feb. 9, 2012, 1:31 PM
Feb. 9, 2012, 9:06 AM
Dec. 3, 2011, 1:24 PM
More on SAP/SuccessFactors: IDC predicted earlier this week the cloud business software space could see a wave of M&A activity, and SAP's big purchase will likely stoke investor hopes for additional deals occurring. Some other cloud software names that could be on the move on Monday: KNXA, TLEO, CSOD, TNGO, N, LPSN, CTCT, SREV.| Dec. 3, 2011, 1:24 PM