CWS 3.0: August 29, 2012


IBM Is Buying Kenexa

Kenexa Corp. struck a deal to be acquired by IBM for $46 per share in a transaction valued at $1.3 billion. Kenexa is a Wayne, Penn.-based talent acquisition and management software and services firm.

Kenexa’s operations include recruitment process outsourcing services, applicant tracking software and other employee management software. Its RPO competitors include Accolo, Alexander Mann Solutions and The Right Thing, according to a Kenexa filing with the U.S. Securities and Exchange Commission. Competitors for its other offerings include firms such as Kronos, Global Innovation Corp., Mercer and Towers Watson.

IBM reported the Kenexa acquisition brings a combination of cloud-based technology and consulting services that integrates both people and processes.

Kenexa reported it had approximately $20 million in RPO revenue in the second quarter of 2012, according to a conference call with analysts. Kenexa’s annual revenue for the year 2011, including RPO and other operations, was $282.9 million.

The IBM transaction is expected to close in the fourth quarter.

IBM has acquired other firms in the talent space. Late last year, it acquired vendor management system provider Emptoris Inc. For that article, click here.


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