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  • 5 February 2010 10:41

SuccessFactors to Acquire Inform

Becomes First Company to Offer Business Analytics and Workforce Planning in Comprehensive Business Execution Software

Brisbane – February 5, 2010 – SuccessFactors, Inc. (NASDAQ: SFSF), the global leader in business execution software, and Inform Business Impact (formerly known as Infohrm Pty Ltd.), the global leader in analytics and workforce planning, today announced they have entered into a definitive agreement under which SuccessFactors will acquire Inform.

With this strategic acquisition, SuccessFactors will be the first company to offer business analytics and workforce planning as part of a comprehensive business execution software suite. Inform has a rich 28-year history and 600 person-years of field and academic research, proprietary content and technology development in business analytics and workforce planning. Today, more than 130 companies use Inform’s applications and strategic consulting, including 24 of the Fortune 500, which represents approximately 2.5 million employees.

The addition of Inform’s powerful, 100 percent cloud-based software and unique expertise dramatically boosts SuccessFactors’ market-leading Business Execution Software (BizX) solution, allowing SuccessFactors to deliver to its customers:

· Predictive analytics

· Workforce planning

· Strategic reporting

· Over 2000 key performance metrics, and

· Peer benchmarking content for over 20 industries.

The combined solution extends value and builds on the investment customers have already made in SuccessFactors by enabling them to assess their readiness to execute their strategies, forecast the impact of their business decisions, mitigate risk and take action accordingly.

“All companies establish strategic plans. The critical challenge today is to execute on those strategies and improve overall business performance,” said Lars Dalgaard, founder and CEO of SuccessFactors. “With this acquisition, SuccessFactors is arming CEOs, CFOs and Human Resource professionals with actionable, high-value insights to perform better, gain competitive advantage and lower costs.

Our acquisition of Inform turbocharges our focus and commitment to BizX and will dramatically drive further adoption within the US$36 billion business execution market.”

Dalgaard continued, “I can’t emphasise enough the uniqueness of Inform and this combination. I believe no one in the industry, even with other business intelligence or homegrown solutions, can come close to replicating Inform’s deep, proprietary intellectual capital and their set of robust and proven applications solutions. When you talk to Inform’s customers, they are just playing a different game. They are answering different questions. They are driving more impact. They are changing the way their companies make decisions.”

“When SuccessFactors went public more than two years ago, we outlined three separate criteria for companies we’d look at for acquisition,” Dalgaard added. “Any acquisition would need to offer unique advanced technology such as analytics or social networking, resellable high margin content, or geographic expansion. Just one of these criteria would be enough, but Inform meets all three. This acquisition allows us to provide something none of our competitors can: software specialised for business execution based on people that has a direct impact on how a company performs."

“Inform’s mission has always been to give businesses the best information and insights possible in order to create a clear path to success. SuccessFactors is aiming to do the same thing, so this is a natural fit,” said Peter Howes, founder and CEO of Inform. “Acquisition wasn’t our goal. In fact, I have never been interested before in being acquired until I saw the strategic fit with SuccessFactors. We’re incredibly excited about integrating Inform’s analytics tools with SuccessFactors’ Business Execution Software. We’re creating an even more powerful solution to help our customers better understand how their employees are impacting business performance – how the business as a whole is running so that they can make more strategic workforce decisions that directly affect the bottom line. No other company in the world can offer this.”

SuccessFactors’ and Inform’s combined solutions are immediately available to customers pursuant to an OEM agreement between the parties, enabling SuccessFactors to maximise cross-selling and up-selling opportunities and develop future versions of the integrated software quickly.

Under the terms of the acquisition agreement, SuccessFactors will pay US$25.5 million in cash and approximately US$15 million in SuccessFactors common stock for Inform, with additional contingent consideration payable based on the fulfilment of continuing employment and the achievement of specified growth targets.

The acquisition on a pro forma basis and excluding the write-down of the deferred revenue balance and any contingent consideration expense is expected to be neutral to SuccessFactors’ net income.

The acquisition is expected to close in Q3 2010, subject to customary closing conditions.

For more information please visit http://www.successfactors.com/inform/. Inform Business Impact was previously known as Infohrm Pty Ltd. (pronounced “Inform”).

About Inform Business Impact

Inform Business Impact (formerly known as Infohrm Pty Ltd.) is the global leader in analytics and workforce planning. Over the 28 years since its founding in 1982, Inform’s brilliant and highly experienced leadership team has crafted a rich set of analytics and workforce planning applications anchored by unique intellectual capital. Inform now serves more than 130 customers with their applications and strategic consulting, including 24 of the Fortune 500, such as Comcast, BHP Billiton, Starbucks, Nokia, and many others.

About SuccessFactors, Inc.

SuccessFactors is the global leader in Business Execution Software. The SuccessFactors Business Execution Suite improves business alignment and people performance to drive breakthrough results for companies of all sizes. More than 6 million users and 3,000 companies leverage SuccessFactors every day. To learn more, visit: www.successfactors.com

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