Kana gains on IBM deal

Kana Communications, Inc. (Nasdaq: KANA) flew up 14 percent Wednesday after it announced a deal with IBM (NYSE: IBM) to integrate its relationship management software with IBM's e-business capabilities.

Shares were up 5 5/6 to 37 13/16. The gains add to Kana's Monday performance, when it (Nasdaq: KANA) shot up 11 percent after Cisco (Nasdaq: CSCO) said it would use the company's enterprise relationship management software.

IBM and Kana said their combined offering will result in enhanced revenue opportunities through the acquisition, retention and development of customer and partner relationships.

Under the agreement, the two companies will also jointly market and sell Kana eRM software.