Wayne, PA (USA), February 2012 - In an effort to expand its reach into the eLearning market, Kenexa, a publicly listed provider of business solutions for human resources and talent management, has agreed to acquire Boston-based OutStart.
OutStart offers SaaS-based social and mobile learning solutions and will help Kenexa bolster its suite of talent-management products, the latter company said in a statement. OutStart is said to have more than 300 customers, ranging from large global organizations to mid-size companies and government agencies.
Kenexa says it expects to fund the acquisition of the privately held software company with its existing cash balance. The company also expects the transaction to be at least neutral to non-GAAP net income available to common shareholders on a per-share basis for 2012.
Rudy Karsan, Chief Executive Officer of Kenexa comments, "Our acquisition of OutStart provides Kenexa with a next-generation eLearning solution. We believe that Kenexa is the only vendor capable of meeting growing demand for an end-to-end, integrated talent- management solution that includes eLearning along with recruiting, performance management, compensation management, proprietary content, and services expertise to help implement best practices."
Using cash on hand, Kenexa paid $38.9 million, subject to working capital and other adjustments described in the merger agreement.
