Friday, July 3, 2015

IBM buys Kenexa software, Wayne, for $1.3 billion

HR software maker going out at $46/share, its highest price

IBM buys Kenexa software, Wayne, for $1.3 billion

0 comments

UPDATE: The Kenexa deal "fits" with IBM's planned $20 billion in software acquisitions and boosts IBM's human-resources business at a time when hiring interest is growing, writes  Joseph D. Foresi, analyst at Janney Capital Markets in Philadelphia. 

IBM is paying 3.7x Kenexa sales, less than SuccessFactors and Taleo fetched in recent deals, Foresi told clients.  IBM generally keeps 36 cents of every dollar in software sales (pre-tax), while Kenexa only keeps about 12 cents.  On the other hand, Kenexa is growing by a healthy 25%/year.

EARLIER: Kenexa Corp., the Wayne-based, publicly-traded recruiting and hiring software firm, says IBM Corp. has agreed to buy the company for $1.3 billion, $46 per share.  Statement here. Inquirer's Jane Von Bergen writes more here.

The sale price, about $13 higher than the stock's recent trading level, represents an all-time high for Kenexa since its 2005 IPO. Major owners include the Fidelity, Vanguard and Wanger investment funds, and Kenexa boss Nooruddin Karsan. Kenexa employs about 2,700, including 239 at the Wayne headquarters. Unclear how many IBM will cut, or add.





 

0 comments
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
 
comments powered by Disqus
About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
Also on Philly.com:
letter icon Newsletter