Kenexa Corp. is a global provider of business solutions for human resources. The company today announced that it has entered into an agreement for the purchase of Salary.com (NASDAQ: SLRY) in an all-cash tender offer of $4.07 per share, or approximately $80 million.
Salary.com provides on-demand compensation software that helps businesses and individuals manage pay and performance. The company is the industry leader in market pricing and has the best-in-class compensation analysis software that helps clients benchmark, compensate and reward its employees.
The proposed transaction has been approved unanimously by the board of directors of both companies and is expected to be completed in the fourth quarter of 2010. Kenexa expects to finance the deal through a combination of its cash balances and borrowings against its credit facility, which was recently put in place.
Kenexa believes the acquisition of Salary.com is compelling for several reasons including:
• A significant opportunity to expand Salary.com’s adoption in large organizations globally.
• Salary.com’s market leadership position in the on-demand, compensation management market.
• The complimentary business models and expected synergies with Kenexa’s current suite of talent acquisition and retention solutions.
Stock market participants seem to be in agreement with Kenexa’s optimism about the deal. Its stock is closed trading at $11.97 a share, up $0.86 or 7.74% for the day, on volume of about 215,000 shares. For further information on Kenexa, please visit its website at www.kenexa.com.