Oracle is entering an agreement to acquire SelectMinds, a provider of cloud-based social talent sourcing and corporate alumni management applications.
The Elusive Search for Talent
Finding and retaining talent is always a top challenge for any business in any industry. According to Oracle, the SelectMinds acquisition is designed to extend Oracle's social and mobile initiatives into talent management. In an open letter to customers and partners, Oracle Development EVP Thomas Kurian said “Oracle and SelectMinds expect to create a comprehensive recruiting, candidate sourcing, and talent management solution for organizations to reach quality referrals through social recruitment.”
By adding SelectMinds’ social sourcing capabilities, Oracle hopes to create a comprehensive recruiting, candidate sourcing, and talent/corporate alumni relationship management offering that lets users leverage employee social relationships. SelectMinds offers a suite of solutions including social employee referral, job distribution and career site applications, as well as a Facebook job page, the CommunityConnect alumni/community management solution and automatic optimization of jobs for mobile search and sharing.
SelectMinds technology is already fully integrated with Oracle cloud recruiting, performance management and human capital management solutions. Oracle plans to use SelectMinds functionality to add social referral and job distribution and talent pipeline capabilities to its existing recruiting/hiring, onboarding, learning/development, engagement/retention and performance management functionality.
Oracle Builds on Taleo Deal
There seems to be an early consensus among industry commentators that Oracle’s acquisition of SelectMinds is a followup to its almost US$ 2 billion purchase of talent management solution provider Taleo Corp. in February 2012. For example, the Wall Street Journal commented that with this deal, Oracle “bets that social networking will continue to drive how companies find new employees.” The Wall Street Journal adds that this purchase bolsters its “biggest” deal of the year (the Taleo acquisition) and that “several of Oracle’s other purchases have been built around social marketing programs.”
At the time of the Taleo acquisition, CMSWire speculated that Taleo would add to Oracle’s public cloud offerings. “It targets an area of growth in enterprise spending and derives from the interest enterprises have shown in any technology that can either save them money, or make them money,” wrote CMSWire contributor David Roe. He also pointed out that Taleo functionality allows Oracle to “offer enterprises a way of managing enterprise talent from the time someone is taken into a company, to the time they leave, enabling enterprises to identify the best ways to motivate individuals and utilize their skills in the best way possible.”
As SelectMinds technology is also public cloud-based, it appears Oracle is building on both key aspects of the Taleo acquisition.
The transaction is subject to customary closing conditions and approvals and is expected to close in the second half of 2012. Until the transaction closes, Oracle and SelectMinds will continue to operate independently, and it is business as usual. Financial terms have not been disclosed.