IBM Purchases Kenexa

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In a recent deal, IBM has acquired Kenexa, a human resources company with a wide array of HR services designed to aid businesses with hiring, retaining, and managing employees. The deal closed at $1.3 billion, or approximately $46 per share. By purchasing Kenexa, IBM will have access to many different HR services including:

  • A recruitment process outsourcing product
  • “Onboarding” solutions, or a management system for documents and workflow
  • Employee assessment systems
  • Kenexa Prove It, a program that helps identify qualified candidates
  • Kenexa Interview Builder, a reference library for interview questions and solutions

IBM believes that the purchase will allow its clients to manage their companies more efficiently. In a statement, IBM reported that “Kenexa complements IBM’s strategy of bringing relevant data and expertise into the hands of business leaders.”

The deal is slightly unusual for IBM because they had not previously been involved in HR and talent management, but it may be the beginning of a new aspect of their growing business.