NEWS30 August 2012

IBM acquires Kenexa for $1.3bn

M&A North America

US— IBM is to acquire employee management specialists Kenexa for approximately $1.3bn. The deal will include the Kenexa Research Institute created after Kenexa acquired Gantz Wiley Research in 2006.

IBM says it hopes to use the acquisition to help clients embrace social business capabilities using insights from both Kenexa’s institute and social media sources. It will integrate Kenexa’s front-office process solutions into its social technology platform.

Rudy Karsan, chief executive officer at Kenexa, said: “Together, Kenexa and IBM will offer solutions that extend from strategy to the technology platform to the delivery of services for clients.”

IBM expects the transaction to close in the fourth quarter of 2012, subject to Kenexa shareholder and regulatory approvals.