More Talent Management Technology Consolidation
The stock market appeared to like the acquisition; Taleo shares were up over 2%. The acquisition further cements Taleo’s market penetration in talent management and recruiting software solutions.
“We are excited about the opportunity to continue providing Cytiva’s customers with a high level of service and support while bringing them the advantages of Taleo’s full suite of recruiting, performance, succession, compensation, and learning capabilities,” said Michael Gregoire, Chairman and CEO of Taleo. “Through our experienced, dedicated integration team we will ensure that our new customers’ needs are heard and addressed as they leverage all of Taleo’s capabilities to better know their people and drive business results.”
Talent management technology and recruiting software is a very interesting market. It is a highly fragmented industry, with niche providers building products for very specific needs. Very few recruiting software companies attempt to capture the entire talent management life-cycle or integrate their software fully with enterprise technology. Taleo is the largest player in the space (and now a little larger) and offers a SAAS or cloud based platform for recruiting and talent management. The consolidation in the talent management technology space is understandable, as the marketshare winners in the space will become required components of all corporate enterprise software. Further acquisitions in the recruiting software space can be expected.
Furthermore, as talent management and recruiting/HR software moves to the cloud, further acquisitions to capture marketshare in this new industry will be required. It will be interesting to see if there is a major acquisition in the space this year, meaning a Microsoft, SAP, Oracle, or IBM purchase and integration. The talent management space is heating up and it will be interesting to watch the activity.