WAYNE, PA – October 6, 2006 — Kenexa (Nasdaq: KNXA), a leading provider of software, services and proprietary content that enable organizations to more effectively recruit and retain employees, today announced an agreement to acquire BrassRing, a leading provider of talent management solutions to enterprise organizations across multiple vertical markets and on a global basis. Under the terms of the agreement, Kenexa has agreed to pay an aggregate purchase price of approximately $115 million for all of BrassRing’s assets, including $10 million in net cash. Kenexa currently expects to finance the deal through a combination of cash and borrowings from its credit facility. The transaction is expected to close in the fourth quarter, subject to customary conditions.
BrassRing provides software, services and outsourcing that helps organizations identify, assess, recruit and retain a globally competitive workforce. BrassRing has earned a number of prestigious industry awards, including two consecutive Software & Information Industry Association Codie Awards (2004 and 2005) for "Best Human Resources Product" and the Sears "Partners in Progress" Award. BrassRing’s single code of software was built with global companies in mind, as evidenced by support for 23 languages.
BrassRing has approximately 180 customers across verticals such as aerospace, financial services, healthcare and medical technology. BrassRing’s customer base includes Time Warner, IKEA, ConAgra Foods, Inc., RR Donnelly, and Nissan Motor Company.
Kenexa’s Chief Executive Officer, Rudy Karsan, stated, “We are very excited to announce the acquisition of BrassRing, which we believe is a major event for both Kenexa and the talent management industry. BrassRing has a robust technology platform that has been proven at the largest global organizations in the world. The addition of BrassRing’s tier one customer base, broad product suite, global product capabilities and infrastructure help to further extend Kenexa’s strong market position.”
Karsan added, “We believe Kenexa is unique in our ability to deliver a total solutions value proposition across software, services, content, and outsourcing. The acquisition of BrassRing will enable Kenexa to deliver that value proposition to customers from the small and medium sized business level to the largest global organizations, irrespective of geographic location. We believe our strong third quarter performance and continued market share gains are evidence that customers prefer Kenexa’s total solutions approach, and the addition of BrassRing extends our capabilities and overall value proposition.”
BrassRing’s President and Chief Executive Officer, Deborah Besemer, said, “Kenexa and BrassRing share the same vision of providing total solutions to customers, including world-class software applications, professional services and outsourcing. BrassRing customers stand to benefit from the much greater resources of the combined company and Kenexa’s tremendous track record of delivering real business benefits to their customers. We believe the combination of BrassRing with Kenexa creates a strong leader in the talent management industry, which is crucial given the early stage and highly fragmented nature of the market.”
Kenexa Acquires Brass Ring for $115 Million
