IBM CORP agreed to buy Kenexa Corp for about $1.3 billion, further consolidating the human resource management software market after Oracle Corp and SAP AG bought out Kenexa’s rivals in the past year.
The deal underpins the importance large technology companies place on niche, web-based software makers, and these acquisitions are expected to plug holes in their own product offerings.
Germany’s SAP bought Kenexa’s competitor SuccessFactors for $3.4 billion cash in December, while Oracle bought rival Taleo Corp for about $1.9 billion in February. IBM’s $46 per share offer represents a 42.5 per cent premium to Kenexa’s close on Friday.
Shares of Kenexa jumped nearly 42 per cent to $45.75 in early trading on the New York Stock Exchange.
“The Kenexa acquisition will complement IBM’s social business and HR business services leadership,” IBM said, adding that it expects the transaction to close in the fourth quarter.
Kenexa has more than 8,900 customers across financial services, pharmaceuticals, retail and consumer industries, it said. – (Reuters)
