Intuit sells Financial Services Divisions to Thoma Bravo for $1.025-billion.
Intuit announced this week that they have entered into an agreement in which the Private Equity firm, Thoma Bravo, would acquire Intuit Financial Services (IFS) for $1.025-billion, subject to regulatory approval and standard closing conditions. Officials expect the closing to occur within the next few months.
Many see this sale as part of Intuit’s strategic realignment, and return to its core market, based around their accounting and tax software and services. Intuit will retain certain assets of the IFS division including OFX connectivity, which provide the link between financial institutions and Intuit's Quicken, QuickBooks and TurboTax software, as well as Mint.com.
Intuit Financial Services is a major provider of on-line and mobile banking software for financial institutions. Orlando Bravo, Thoma Bravo managing partner said, “Thoma Bravo’s acquisition of IFS is consistent with our strategy of buying great technology franchises with significant recurring revenue.” The IFS acquisition will apparently be run as a stand-along company continuing to focus on providing market leading digital banking and mobile solutions to financial institutions.
Intuit president and chief executive officer, Brad Smith, said “Thoma Bravo is gaining a richly talented team…” Intuit Financial Services has 730 employees in multiple offices across the United States and India.
Source: Intuit, Inc.”Thoma Bravo to Acquire Intuit’s Financial Services Business”, July 1, 2013. http://about.intuit.com/about_intuit/press_room/press_release/articles/2013/ThomaBravotoAcquireIntuitFinancialServicesBusiness.html
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