The acquisition is valued at $46.00 per share or around $1.9 billion, net of Taleo's cash and debt, said Oracle, the software giant with more than 380,000 customers including the Fortune 100.
Citing its own data, Bloomberg reported that the deal would be the largest in the enterprise software industry since November when Hewlett-Packard Co. acquired Autonomy Corp. for more than $10 billion in cash.
“Human capital management has become a strategic initiative for organizations," said Thomas Kurian, Executive Vice President, Oracle Development, in a statement. “Taleo’s industry leading talent management cloud is an important addition to the Oracle Public Cloud."
Oracle and Taleo (NASDAQ: TLEO), whose fourth-quarter and annual results coincided with today's announcement, anticipate the deal will close in the middle of the year following Taleo stockholder approval, regulatory approvals and other customary closing conditions.
During the 2011 year, Taleo reported a net loss per share of 35 cents, falling into the red after posting a profit of 1 cent per share in the 2010. Revenues, though, grew 30 percent to $309 million; subscription revenues rose 29 percent to $257 million while professional service revenues increased 55 percent to $59 million. In the previous quarter, Abbott Laboratories, Credit Suisse Securities, LLC and Petco were among 270 new customers to choose Taleo's Talent Management solutions for recruiting, performance, learning and/or compensation management.