Moody's says IBM's $1.3 billion acquisition of Kenexa is credit positive
Moody's said IBM's announcement that it agreed to buy human resource software firm, Kenexa, is credit positive because it complements IBM's strategy to create cloud-based software technology and consulting services that help customers gain business intelligence through social networks to create a more connected and smarter workforce. The announcement is "consistent with IBM's strategy to build out its software and services capability through internal research and development efforts as well as through acquisitions which IBM said would aggregate $20 billion as part of its five-year 2015 roadmap", said Moody's senior vice president, Richard Lane. While we expect IBM's acquisition activity will remain active, the company's well-honed, bolt-on acquisition strategy results in a low risk of IBM pursuing large, expensive, or disruptive acquisitions. International Business Machines Corp., headquartered in Armonk, New York, is one of the world's leading providers of hardware systems, software and technology related services. IBM generated $106 billion of revenue for the twelve months ended June 2012.
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