UPDATE 1-Kenexa to buy Salary.com for $80 mln

* Kenexa to pay $4.07 a share

* Offer at 42 pct premium

* Sees positive impact on operating results

Sept 1 (BestGrowthStock) – Kenexa Corp (KNXA.O: ), which provides
software for managing human resources, said it will acquire
Salary.com Inc (SLRY.O: ) for about $80 million in cash to expand
its presence into compensation management.

Kenexa will pay $4.07 a share, a premium of about 42
percent to Salary.com’s closing price on Tuesday.

Salary.com, which has not posted an annual profit since it
went public in February 2007, provides on-demand software that
helps businesses manage compensation and performance. Last
year, its revenue totaled about $46 million.

Kenexa expects the deal to have a positive impact on its
operating results excluding some items, and it also reiterated
its full-year outlook.

The company expects to finance the deal through cash and
borrowings against its credit facility.
(Reporting by A.Ananthalakshmi in Bangalore; Editing by
Saumyadeb Chakrabarty and Gopakumar Warrier)

UPDATE 1-Kenexa to buy Salary.com for $80 mln