Robert DeFrancesco’s
TechStockProspector.com
February 10, 2012
Oracle’s Purchase of Taleo (TLEO) Could Spark More Deals
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Oracle announced yesterday that it would acquire Taleo (TLEO, $45.65), a provider
of cloud-based talent-management solutions, for $46 a share in a $1.9-billion deal.
This comes after SAP’s announced acquisition of SuccessFactors in the same
software niche.
Taleo has been in the Tech-Stock Prospector Small-Cap Portfolio since June 2007
at $22.35 a share. I had estimated Taleo’s fair value buyout price at $44.70, so I was
not too far off; I figured the company would not remain independent for long after
SuccessFactors was scooped up.
Oracle CEO Larry Ellison simply could not sit back and let SAP get all the attention.
This is a good acquisition for Oracle as it strengthens the company’s cloud-software
position against rivals SAP and Salesforce.com.
It is nice to see this exit strategy for Taleo. Selling out to Oracle now in the middle of
a cloud-software land grab by the biggest players is a smart move. Taleo CEO
Michael Gregoire deserves a lot of credit. I remember when Taleo shares traded
below $6 in November and December 2008.
Who could get bought next in the cloud-software market? I have shared my top
potential buyout targets with TechStockProspector.com subscribers.
The February 2012 issue of Tech-Stock Prospector is now available at
TechStockProspector.com (subscription required) and in the Amazon.com Kindle
store.
We offer a 30-day trial subscription, including daily Web updates, for just $47.
Here are some of the topics covered in the February 2012 issue:
*Q4 tech earnings surprises
*Acme Packet gets conservative
*A small-cap video infrastructure play
*Informatica bounces back
*Qualcomm going strong
*Google bets big on mobile
*EMC grabs market share
*A cloud-software name with Facebook exposure
*An activist investor sees value in PMC-Sierra
*Updated Apple valuation analysis
*One hardware company benefiting from new software offerings
*How to play a promising product refresh cycle in networking
*An IT-security leader keeps gaining market share
*MicroStrategy shines in mobile business intelligence
*LSI Corp is a new force in flash storage processors
*TSP Deal Report: Boosting shareholder value at CA
To place an order, call TSP Customer Support at 800-392-0998 or visit
TechStockProspector.com
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Tech-Stock Prospector is now available in the Amazon.com Kindle Store in the
Business & Investing section of the online magazine stand.
Here’s the Kindle link: http://www.amzn.com/B004T6Z0ME
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Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street.
TechStockProspector.com, launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.
For more information or to place an order, call 800-392-0998.