IBM has agreed to pay $1.3bn for human resources (HR) and consulting service provider Kenexa.
IBM said that it would pay some $43 per share to land the publicly-traded firm. The move adds to an already expanding company portfolio for IBM.
"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 IBM general manager of social business Alistair Rennie.
"IBM is uniquely positioned to help clients generate real returns from their social business investments, while helping them gain intelligence into the data being generated in these networks to be more competitive in their markets."
Kenexa provides social networking services for HR departments. Among the services the company offers includes a cloud-based social networking platform that finds potential employees for customers.
IBM says it hopes the acquisition will complement its existing social business and HR solutions. The company will continue to work with Kenexa customers and build upon current Kenexa platforms.
"The customer is the big winner in all this because the combination of our two organisations will deliver more business outcomes than ever before," said Kenexa chief executive Rudy Karsan in a statement.
"Together, Kenexa and IBM will be unmatched in the industry, offering solutions that extend from strategy to the technology platform to the delivery of services for clients."
IBM made headlines earlier this month when it purchased flash memory company Texas Memory Systems. The purchase was made to enhance sold-state storage capabilities for IBM datacentre products.
Rumours have also spread recently that IBM was considering purchasing Research in Motion's enterprise business. The struggling handset maker has been linked to a variety of potential buyers since the beginning of this year.
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