SAP AG (NYSE:SAP) announced it will acquire SuccessFactors Inc., a human resources data management company, in a cash deal for $3.4 billion.

The German software company paid $40 per share, a 52% premium of SuccessFactors’ closing share price on Friday, Dec. 2.

Investing Insights: Cloud Computing: Your Cheat Sheet to the Cloud Business Landscape.

With the deal, SAP will look to extend its reach in the cloud computing market. SuccessFactors touts this as a safe alternative to outsource data centers and utilizes less hardware. The company has more than 3,500 customers with more than 15 million subscribers across 168 countries.

According to Bloomberg, SuccessFactors has a 2013 forecast of $502 million in revenue, an increase from this year’s $332 million.

The acquisition should heat up competition with Oracle Corporation (NASDAQ:ORCL) who purchased the cloud competitor, RightNow Technologies Inc., six weeks ago for $1.5 billion.

Here’s how top cloud computing stocks are trading on the news:

SAP AG (NYSE:SAP): SAP shares recently traded at $59.54,. They have traded in a 52-week range of $47.39 to $68.39. Volume today was 149,400 shares versus a 3-month average volume of 1,838,620 shares. The company’s trailing P/E is 19.85, while trailing earnings are $3.00 per share.

Oracle Corp. (NASDAQ:ORCL): ORCL shares recently traded at $31.20,. They have traded in a 52-week range of $24.72 to $36.50. Volume today was 9,858 shares versus a 3-month average volume of 32,822,000 shares. The company’s trailing P/E is 17.75, while trailing earnings are $1.76 per share.

Amazon.com Inc. (NASDAQ:AMZN): AMZN shares recently traded at $196.03,. They have traded in a 52-week range of $160.59 to $246.71. Volume today was 38,129 shares versus a 3-month average volume of 7,060,060 shares. The company’s trailing P/E is 103.34, while trailing earnings are $1.90 per share.

Rackspace Hosting, Inc (NYSE:RAX): RAX shares recently traded at $43.01,. They have traded in a 52-week range of $29.52 to $46.49. Volume today was 0 shares versus a 3-month average volume of 1,571,300 shares. The company’s trailing P/E is 91.51, while trailing earnings are $0.47 per share.

International Business Machines Corp. (NYSE:IBM): IBM shares recently traded at $189.66,. They have traded in a 52-week range of $143.52 to $191.33. Volume today was 8,069 shares versus a 3-month average volume of 6,013,500 shares. The company’s trailing P/E is 14.95, while trailing earnings are $12.69 per share.

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