IBM closes $1.3B Kenexa acquisition

IBM plans to boost its enterprise social collaboration offerings with Kenexa's human resources applications and services

IBM has closed its US$1.3 billion acquisition of Kenexa, intended to boost IBM's enterprise social collaboration offerings with Kenexa's cloud-based human resources applications and IT services.

IBM paid $46 per share for Kenexa, which at the time the deal was announced on Aug. 27 represented a 42 percent premium for the company. Kenexa shares closed at $45.96 on Monday.

Kenexa shareholders approved the acquisition on Monday in a vote that was supposed to take place on Nov. 29 but that the company delayed to accommodate dissenting shareholders who wanted a higher price. The vote was postponed to give those shareholders a chance to review a proposal to settle a lawsuit they filed challenging the acquisition.

The proposal offers the shareholders dissenter rights, usually understood as a way of giving shareholders who don't agree with an acquisition the option to cash out of the deal. The lawsuit was filed in the Court of Common Pleas of Chester County, Pennsylvania, and the settlement requires court approval, which is pending.

The deal also ran into some controversy in India, where Kenexa's subsidiary there had leased 25 acres of land from the Andhra Pradesh state government in 2008 after pledging it would create 2,500 local jobs.

However, the company fell short of that jobs target, so IBM is returning about 21 undeveloped acres to the government and keeping about four acres where the subsidiary's building sits and about 500 people work.

Kenexa is based in Wayne, Pennsylvania, and has almost 9,000 customers, about 2,800 employees and operations in 21 countries.

The company's cloud-based applications are designed to help customers automate and manage HR functions like recruiting, compensation, performance management and employee surveys. Kenexa also offers complementary consulting services.

IBM plans to continue selling Kenexa's applications and IT services on a standalone basis, while progressively bundling and integrating them with IBM enterprise social and HR software and services.

Kenexa competitors Taleo and SuccessFactors were acquired in the past year by Oracle and SAP, respectively, as larger vendors try to capitalize on strong growth for enterprise HR software.

IBM envisions adding a layer of enterprise social networking across the Kenexa applications, as social collaboration plays a growing role in recruiting and other HR functions.

IBM plans to talk in more detail about its plans for Kenexa at its IBM Connect 2013 conference next month in Orlando.

"We'll be morphing our services and products and solutions into building a smarter workforce market," said Tim Geisert, Kenexa's chief marketing officer.

Juan Carlos Perez covers enterprise communication/collaboration suites, operating systems, browsers and general technology breaking news for The IDG News Service. Follow Juan on Twitter at @JuanCPerezIDG.

Join the PC World newsletter!

Error: Please check your email address.

Tags applicationsIBMsoftwareHRSoftware as a servicecloud computinginternet

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?