International Business Machines Corp To Acquire Kenexa To Bolster Social Business Initiatives

International Business Machines Corp and Kenexa Corporation announced they have entered into a definitive agreement for IBM to acquire Kenexa, a publicly held company headquartered in Wayne, Pa., in a cash transaction at a price of $46 per share, or at a net price of approximately $1.3 billion. The transaction has been approved unanimously by the Kenexa Board of Directors and the Kenexa Board of Directors recommends that Kenexa shareholders approve the transaction. Pending shareholder approval and satisfaction of regulatory and closing conditions, the transaction is expected to be completed during the fourth calendar quarter. The Company’s shareholders will be given notice and certain information about the transaction in a proxy statement that will be sent to shareholders. Following completion of the transaction, Kenexa will be wholly owned by IBM and its stock will no longer trade on the New York Stock Exchange. Due to the pending transaction with IBM, Kenexa is withdrawing all previously issued financial guidance with respect to the full year ending December 31, 2012 as well as the third quarter ending September 30, 2012. Lazard is serving as exclusive financial advisor to Kenexa in connection with the transaction. Pepper Hamilton LLP is legal advisor to Kenexa in connection with the transaction.