Oracle to Acquire Cloud-Based-Software Firm for $1.9 Billion |
| Wall Street Journal - Feb 9, 2012 |
Oracle Corp. agreed to acquire human-resources software maker Taleo Corp. for $1.9 billion, the software giant's latest push into products delivered over the Internet.
The deal announced Thursday suggests the industry's recent buying streak of Web-based software, commonly referred to as cloud computing, isn't over. U.S.-based Oracle and rival SAP AG , based in Germany, are seeking to tap the fast growth in sales of online business tools, which can provide savings and fewer maintenance issues for customers. The cloud software market remains fragmented, with numerous vendors selling programs for specific business functions.
Meanwhile, the mild 18% premium over Taleo's close Wednesday raises questions about whether the remaining cloud-software companies can still command lofty premiums amid the sector's continuing consolidation. Oracle's bid for Taleo, at $46 a share, pales in comparison with the 52% premium that SAP offered human-resources software maker SuccessFactors Inc. in a $3.4 billion buyout.
Read Full Article from Wall Street Journal
- Posted: 2012-02-09 15:40:00
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