Recruiting Software Company Considers Acquisitions

One popular recruiting software company is planning to undertake more acquisitions while continuing to better its new line of products.

Taleo Corp, a recruiting and workforce management software provider, currently targets 15 percent to 20 percent of the recruiting software market share, but hopes to increase that number to 20 percent to 55 percent by next year.

Earlier this week, Taleo agreed to acquire Worldwide Compensation Inc., a strategic partner that offers software to handle performance-based compensation, for $16 million in cash.

And that is most likely not the last acquisition planned for the company, as officials have said they plan to help the company reach double-digit revenue growth through more acquisitions during the next two to three years.

"In the performance management market we are relatively nascent and have less than 1 percent market," Chief Executive Mike Gregoire told Reuters. "We would like to see ourselves (increasing the share) to mid to high single digits over the next couple of years."

Currently, Taleo's biggest competitors include Oracle Corp, SuccessFactors Inc and Kenexa Corp. Companies use software like Taleo's for recruitment, performance management and other human resources functions. Taleo's shares have more than doubled in value during the last six months.

Taleo recently released a software to help businesses access its talent-management products through mobile phones and social networking sites. The company has already signed three customers, including El Paso Electric Co and InfoPrint Solutions Co. Taleo's enterprise customers include Hewlett-Packard Co and Garmin International Inc.