IBM Buys Software Firm

 

NEW YORK – IBM Corp will buy Kenexa Corp for about 1.300 million dollars to enter the software market human resources administration, in a move that could increase competition with Oracle Corp and SAP AG.

Oracle Corp and SAP AG last year bought Kenexa rival companies.

The IBM agreement shows the desire of large technology firms position themselves in niche manufacturers web-based software, whose products are less vulnerable to the recession because they face upfront costs for software licenses or installation.

Acquisitions are expected in the area of human resources to fill gaps in the companies in their product offerings to businesses.

Germany’s SAP to buy SuccessFactors competitor Kenexa 3.400 billion in cash in December, while Oracle acquired Taleo Corp for about 1.900 million in February.

The two companies made purchases from companies other cloud storage services, including RightNow Technologies and Ariba Inc.

The offer of $ 46 per share represents a premium of 42.5% over the closing values Kenexa Friday.

Shares of Kenexa jumped nearly 42% to 45.92 U.S. dollars on Monday in New York Stock Exchange. Shares of Cornerstone OnDemand Inc couple climbed 7% to 26.82 dollars in afternoon trading.

“The acquisition of Kenexa complement IBM’s business and leadership in human resources services to companies,” IBM said.

The transaction, which is expected to close in the fourth quarter, suggesting that IBM is ready to enter the fierce market competition production business applications over the Internet.

That puts the company face to face with his colleague and rival SAP Oracle and Salesforce.com Inc, the leading manufacturer of software in a highly populated.

As large companies, there are several private producers of software for human resources management, such as Silicon Valley Workday, presenting for an initial public offering recently.

IBM is expanding in the growing field of business applications via the web, as its new CEO, Ginni Rometty, looking print your label to the company 100 years of history, considered one of the most conservative technology firms in the world.

IBM has focused its highly profitable software division in emails, databases, operating systems and “middleware”-programs that are responsible for the installation of computer networks. Instead, it has prevented the sale of software applications such as human resource management.

Kenexa has more than 8,900 clients including financial services firms, pharmaceutical, retail and consumer industry.

 

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