Oracle is acquiring Taleo, a cloud based human resource recruiting and management company for $1.9 billion.
The acquisition comes on the heels of SAP’s purchase of SuccessFactors for $3.4 billion in December. Taleo’s technology is used by 5,000 organizations for human resource management.
Both companies are rushing to catch up in the fast-growing cloud-computing market.
Oracle is using acquisitions to build its cloud business as part of efforts to help blunt the impact of a possible slowdown in software sales growth. Cloud services are meant to appeal to customers seeking to save money by letting them access computing power over the Web. Taleo is another fit-in with that strategy, following the $1.5 billion purchase of RightNow Technologies Inc. last year, said Mark Moerdler, an analyst at Sanford C. Bernstein & Co. in New York.
“Taleo is the next-largest player in the talent-management space,” said Moerdler.
Taleo’s shares are up $46 a share or 18% on the acquisition.