Taleo To Acquire Vurv

Taleo Corporation, the leader in on demand talent management solutions today announced that it has signed a definitive agreement to acquire Vurv Technology, Inc., a privately held talent management software provider, for approximately $128.8 million in cash and stock.

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This acquisition enhances Taleoís leadership position in talent management, and gives the company additional scale, resources and expertise to meet the growing market demand for talent management solutions. The combined company will have a broader product set, an expanded development team and a stronger international presence. The combined company will serve over 3,400 customers around the world, including 48 of the Fortune 100, and more than 2,800 small and medium-sized businesses.

ìThis announcement marks an inflection point for talent management, making it easier for customers to realise the full benefits of unified talent management applications,î said Michael Gregoire, president and CEO of Taleo. ìTogether, we can help companies better manage workforce challenges brought about by shifting demographics, globalisation, and low levels of engagement. These challenges demand a new generation of talent management solutions that unify recruiting, performance, succession and compensation applications onto one comprehensive on demand software platform. This unified talent management solution will help companies identify and attract the best candidates, manage and motivate their workforce, and tie compensation to performance.î

ìTaleo shares our vision and passion for helping customers around the world attract, retain and engage their people,î said Derek Mercer, CEO of Vurv. ìBoth Vurv and Taleo have independently built world-class organisations with extensive domain expertise and development resources. By bringing our two companies together, we will be better able to deliver talent management solutions addressing the advanced needs of our customers.î

Under the terms of the agreement, Taleo will pay approximately $128.8 million, based on yesterdayís closing price for Taleoís Class A common stock of $20.32 for all of the outstanding capital stock of Vurv and the assumption of vested employee stock options. The consideration will be comprised of 4.1 million shares of Taleo Class A common stock, approximately $36.5 million in cash, subject to adjustment for third party expenses and certain other specified items and the assumption of up to $9.0 million of debt. In addition, Taleo will also assume unvested employee stock options. The acquisition is subject to customary closing conditions, including regulatory approval, and is expected to be completed prior to the end of the second quarter of 2008. Taleo expects the transaction to be accretive to non-GAAP earnings in fiscal 2008, but not accretive to GAAP earnings.

www.vurv.com
www.taleo.com