IBM buys Kenexa for $1.3 billion
updated 09:31 pm EDT, Tue August 28, 2012
Purchase will shore up IBM's social offerings
IBM announced today that it was purchasing human resources software company Kenexa. The computing and enterprise services will pay $1.3 billion in cash to acquire Kenexa, which supplies an array of services aimed at aiding in employee recruitment, retention, and development. As The Wall Street Journal reports, the deal is likely to help IBM as it competes against other enterprise technology players such as Oracle and Salesforce.
IBM aims to use Kenexa's experience in building expertise networks to apply social media to business. The company's software allows companies to automate their recruiting functions, aiding them in developing tests to streamline the hiring process. The company hasn't turned a profit in the last four years, but IBM paid a premium to acquire it, as Kenexa's shares were up 42 percent today from their closing price on Friday.
IBM has pledged to spend $20 billion on acquisitions from 2011 to 2015. The company will focus on software and services as it competes against other enterprise-oriented technology firms.
