Watch CBS News

IBM buying Kenexa for approximately $1.26B

(AP) ARMONK, N.Y. - IBM (IBM) is buying employee management software maker Kenexa Corp. (KNXA) 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.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.