BANGALORE (Reuters) - Recruiting and workforce management software provider Taleo Corp TLEO.O is eyeing more acquisitions and betting on its new line of products as it looks to take away market share from rivals.
The company is targeting 20 percent to 25 percent of the recruiting-software market share by next year, compared with its present share of about 15 percent to 20 percent, Chief Executive Mike Gregoire said in an interview with Reuters.
Earlier on Tuesday, the company agreed to acquire strategic partner Worldwide Compensation Inc, which offers software to handle performance-based compensation, for $16 million in cash.
“In the performance management market we are relatively nascent and have less than 1 percent market. We would like to see ourselves (increasing the share) to mid to high single digits over the next couple of years,” he said.
Organizations use Taleo’s on-demand talent-management software for recruitment, performance management and other human resources functions.
The company plans to boost its double-digit revenue growth with a couple of acquisitions in the next two or three years, Gregoire said.
“We have about $50 million in cash we could spend on M&A,” Gregoire said.
Taleo indicated these acquisitions might be smaller than its last acquisition of Vurv Technology Inc for about $128 million.
Earlier in the day, the company unveiled a software that helps businesses access its talent-management products through mobile phones and social networking sites.
It has signed up three customers, including El Paso Electric Co EE.N and privately held InfoPrint Solutions Co, for the new products.
Dublin, California-based Taleo sees its third quarter treading in line with expectations, Gregoire said.
The company, whose enterprise customers include Hewlett-Packard Co HPQ.N and Garmin International Inc, has been growing its revenue in the economic downturn. It has grown 27 percent, 29 percent, 43 percent and 39 percent in the last four quarters.
Taleo’s shares have more than doubled in value in the last six months.
Editing by Vinu Pilakkott
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