IBM's purchase of Wayne-based Kenexa for $1.3 billion earlier in the week is a sign that valuations are rising for enterprise software businesses that include social elements, writes the New York Times.
Technology giants are paying hefty premiums to rapidly expand their social footprint. The Kenexa deal, for instance, comes on the heels of Microsoft’s billion-dollar deal for Yammer, the enterprise social network. That $1.2 billion acquisition, announced in June, was seen as Microsoft’s first big push into the market. And Salesforce.com recently purchased Buddy Media, the social media advertising business, for $698 million.
Kenexa will help the company bolster its current suite of social enterprise tools, a group that includes social networking and instant messaging solutions. Kenexa, based in Wayne, Pa., has 2,800 employees and about 8,900 customers. The company reported a profit of $1.9 million in 2011 on revenue of $282.9 million. Revenue was up 44 percent from the previous year.
Original source: The New York Times
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