IBM to buy cloud HR software vendor Kenexa for $1.3B

27.08.2012
IBM plans to boost its enterprise social line of software by acquiring Kenexa, a maker of cloud-based human resources applications, the companies said on Monday.

IBM has agreed to pay US$46 per share for Kenexa in a cash transaction worth about $1.3 billion. Kenexa shares closed at $32.39 on Friday, so IBM is offering a premium of 42 percent for the company.

, based in Wayne, Pennsylvania, has almost 9,000 customers, including more than half of the Fortune 500. It has about 2,800 employees and operations in 21 countries.

Kenexa makes a variety of cloud-based applications for like recruiting, compensation, performance management and employee surveys. Kenexa also offers consulting services to complement its software products.

IBM's goal in acquiring Kenexa is to strengthen its enterprise social and HR software and services. IBM plans to continue developing and supporting Kenexa products, while also bundling and integrating them with its own wares.

"I expect us to move quickly post-closing to bring all of this value together," said Alistair Rennie, general manager of IBM social business, during a press conference.