IBM has announced that it is buying the cloud-based personnel software company Kenexa.
IBM is buying the cloud-based personnel software company Kenexa for more than $1.3 billion.
According to IBM the move will boost its moves to create social business packages and help clients gain information from the streams of data generated from social networks within companies.
While Kenexa uses Cloud-based technology and consulting services, what appears to interest IBM is that it can create and mine data from social networks.
IBM’s general manager, social business Alistair Rennie said that Kenexa complements IBM’s plan to bring data and expertise to business leaders so that they can build smarter work teams.
He said that the adoption of social business technology is supporting the growth of big data and the need for analytics in the enterprise.
“A recent global IBM study revealed that 57 percent of CEOs identified social business as a priority and more than 73 percent are making investments to draw insights into available data”, Rennie said.
The survey also showed that 70 percent personnel as the biggest contributor to economic value.
He said that social media has pervaded the lives of consumers, helping them connect with each other in new ways. However a similar shift is occurring in the enterprise as business leaders look for ways to generate value through the use of social technologies to evolve their front-line business operations, he said.
Kenexa supports more than 8,900 customers across a variety of industries, including financial services, pharmaceuticals, retail and consumer, including more than half of the Fortune 500.
IBM can now offer strategic consulting, a social technology platform, and expertise on a global scale to help clients enable a smarter workforce and gain a competitive advantage in any market.
Kenexa has approximately 2,800 employees. Consistent with its strategy, and IBM plans to continue to support Kenexa clients.
Big Blue expects the transaction to close in the fourth quarter of 2012.