Intuit announced today that it had reached an agreement with Thoma Bravo to acquire its Financial Services arm of the company. The acquisition includes an internet banking platform, a digital payment solution, mobile banking and add-on solutions. The transaction was valued at approximately $1.025 Billion and is expected to be finalized over the coming months. Intuit is the maker of software titles such as QuickBooks, Quicken and TurboTax.
Thoma Bravo, a private equity group gains a powerful payment processing platform as well as many digital payment processing methods and a digital banking platform recognized as best of breed. Their buy-and-build strategy may have landed them a powerful product portfolio in Intuit’s Financial Services. Going forward Intuit plans to buy back a significant chunk of their stocks while focusing on their software brands. Thoma Bravo will extend the digital payment processing solutions into a new independent business and begin competing in a heavily crowded electronic payment processing and financial services industry.
Intuit Financial Services, currently the premier online and mobile banking software of financial institutions were expecting accelerated growth following expected end user adoption. By handing off the baton, Thoma Bravo is hoping to ride that wave of digital payment adoption. In addition to the internet banking platform, digital payments and mobile banking they will also receive Purchase Rewards, Finance Works, and the digital banking add-ons and some third party payment solutions. Intuit will retain mint.com and OFX Connectivity as they are not part of the deal. The remaining elements will be considered discontinued by Intuit.
Intuit, which was founded in 1983 had an annual revenue of 4.15 Billion in fiscal year 2012. Their offices in the United States, India, Canada and the United Kingdom have approximately 8,000 employees. A big Deal Indeed.