) has agreed to buy SelectMinds, a cloud-based recruiting solutions
provider. The acquisition is expected to be completed in the second
half of 2012. However, the financial details were not disclosed.
Oracle has integrated SelectMinds products into Oracle Cloud
Recruiting, Performance Management and Human Capital Management
SelectMinds provides recruitment solutions to various
organizations by leveraging its software solution (TalentVine) that
enables employers to execute social recruiting campaigns by using a
single interface. The SaaS solutions offered by SelectMinds provide
better recruitment results by targeting social networks such as
) and Twitter connections. The company has a distinguished
clientele, which comprise companies like
International Business Machines Corp
JPMorgan Chase & Co.
) to name a few.
Along the same lines, Oracle had bought Taleo Corp., a SaaS
human resource software provider, for $1.9 billion in the early
part of 2012. Taleo's Talent Management Cloud helps organizations
to enhance human resource capabilities, improve performance and
Oracle remains very active on the acquisition front and
generally targets companies that can be integrated within its
existing or new product lines. Oracle also acquires organizations
with competing technologies with the intention of eliminating rival
products. We believe that acquisitions in the field of human
resource management and cloud computing will be beneficial for
Oracle over the long term.
However, Oracle faces significant integration risks due to the
rapid pace of acquisitions within a short span of time, in our
view. We also note that Oracle is a late entrant in the field of
cloud computing compared to peers such as
). Hence, it might face tough competition.
We remain Neutral on a long-term basis (6-12 months). Currently,
Oracle has a Zacks #3 Rank, which implies a Hold rating on a
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