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Kenexa buys Salary.com for $80 million

Kenexa Corporation, a provider of business solutions for human resources, announced yesterday that it has purchased Salary.com for $80 million.

Kenexa and Salary.com entered into a mutual agreement in which Kenexa agreed to purchase Salary.com, an on-demand human resources software that helps businesses and individuals manage pay and performance, for $80 million in cash or at a price of $4.07 per share.

The acquisition is subject to a majority of the outstanding Salary.com shares being tendered, regulatory approvals and other closing conditions.

According to TradingMarkets.com, Kenexa expects to finance the transaction through a combination of its cash balances and borrowings against its credit facility. The agreement has been unanimously approved by the Board of Directors of both companies.

Kenexa said it expects to complete the deal in the fourth quarter of 2010. They also expressed confidence that Salary.com’s compensation structure software will blend well with its own employee acquisition and retention software.

Kenexa reiterated its third-quarter earnings prediction from earlier this month. The company currently expects adjusted earnings, excluding some one-time items, or 12 to 13 cents per share. It predicts revenue of $45 million to $47 million, according to BusinessWeek.com.

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