IBM buying Kenexa for approximately $1.26 billion

AP News
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Posted: Aug 27, 2012 10:17 AM
IBM buying Kenexa for approximately $1.26 billion

ARMONK, N.Y. (AP) — IBM is buying employee management software maker Kenexa Corp. for about $1.26 billion.

IBM says that the buyout will complement its social business and human resources business services team.

Kenexa, based in Wayne, Pa., uses a combination of cloud-based technology and consulting services to assist more than 8,900 customers.

IBM said Monday that it will pay $46 per Kenexa share, a 42 percent premium to the company's Friday closing price of $32.39. FactSet says Kenexa currently has approximately 27.4 million outstanding shares.

Kenexa stock jumped more than 41 percent to $45.86 in morning trading Monday. Shares of International Business Machines Corp. slipped 89 cents to $196.88.

Kenexa's board unanimously approved the transaction It still needs regulatory approvals and the approval of Kenexa shareholders. It is expected to close in the fourth quarter.