**Editor's Note: Please click here for a summary of the biggest M&A in Q2 2012 in the service-provider and BSS/OSS spaces.**
IBM has agreed to acquire Kenexa for $1.3 billion.
Big Blue says the acquisition will strengthen its leadership in helping clients with social business capabilities and allow them to gain insights on the mass amount of information generated from social networks.
Kenexa, a provider of recruiting and talent management solutions, combines cloud-based technology and consulting services to provide solutions for a smarter, more effective workforce across their most critical business functions.
IBM and Kenexa will work together to bring relevant data and expertise into the hands of business leaders, and clients will be able to develop skills to build the right teams for the right projects.
A recent IBM study revealed that 57 percent of CEOs identified social business as a top priority and more than 73 percent are making significant investments to draw insights into available data.
"Every company, across every business operation, is looking to tap into the power of social networking to transform the way they work, collaborate and out innovate their competitors," said Alistair Rennie, general manager, social business, IBM.
IBM expects the transaction to close in the fourth quarter of 2012 upon regulatory approvals and the satisfaction of other customary closing conditions.