Kenexa Acquires Webhire
Kenexa announced on Wednesday the intent to acquire Webhire. My response is mixed. Kenexa paid a handsome price ($34 million in cash) for a somewhat distressed asset. Webhire has a strong heritage in recruiting with their Restrac product and a stable customer base but has been challenged in recent years with flat growth. Nonetheless, Webhire’s recruiting and onboarding solutions are a nice compliment to Kenexa’s core strength in assessment and testing services and solutions.
Kenexa continue to impress the market with their ability to generate cash. I look for them to take some cost out of Webhire to generate even more cash both short term and long term. Wall Street seemed to also like the acquisition announcement.
In related news, Workstream has quickly responded by offering a Webhire "trade-in" program, offering a 50% discount to existing Webhire customers. Does Workstream ever plan on making money?
December 23rd, 2005
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