Tech giant IBM expands into application development with acquisition of Kenexa
In a significant move, IBM has agreed to acquire Kenexa, an HR software-as-a-service provider, for $1.3 billion. This acquisition is set to position IBM in competition with industry giants like Workday, SAP, Salesforce, and Oracle in the HR SaaS market.
IBM believes that this acquisition will bolster its leadership in social business capabilities. The Kenexa acquisition is expected to provide actionable insights from social network data, a feature that is becoming increasingly important in today's digital age.
Kenexa, founded in 1996, offers a range of services, including software that analyses social media for candidate identification and software for developing relationships with candidates and employees via social media. The company also provides hosted software for HR processes such as recruitment, employee onboarding, and performance management.
Last year, Kenexa reported revenue of $283 million. IBM had previously acquired Kenexa in 2013 for one billion dollars, but it seems the company's potential in the HR SaaS market has since grown.
Meanwhile, Salesforce is planning to relaunch Rypple, which will be rebranded as Work.com. The relaunch is scheduled to occur at Salesforce's Dreamforce user conference next month. The HR SaaS market has experienced consolidation in the last year, with SAP buying SuccessFactors for $3.8 billion, Salesforce buying Rypple, and Oracle buying Taleo for $1.9 billion.
These acquisitions and relaunches reflect the growing importance of HR SaaS solutions in the business world. As companies continue to digitise their operations, the demand for efficient, user-friendly HR software is expected to rise.
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