Intuit to buy Digital Insight for $1.35bn

Intuit to buy Digital Insight for $1.35bn

California-based Internet banking systems vendor Digital Insight has agreed to be acquired by financial management software company Intuit for approximately $1.35 billion.

Under the terms of the agreement, Intuit will pay $39 per share in cash for each Digital Insight common share, which is an 18% premium to the stock's closing price of $33 on Wednesday. The total purchase price is around $1.35 billion on a fully diluted basis.

California-based Intuit says the acquisition will enable it to combine work flows in its financial management tools with online banking capability offered by Digital Insight to create new offerings for consumers and small businesses. Together the companies will serve more than 5000 financial institutions, nearly 25 million consumers and nearly small million small businesses.

Ccommenting on the acquisition, Steve Bennett, Intuit president and CEO, says the combination "will put Intuit in an excellent position to bring a new generation of online banking solutions to market in a way that will redefine the way small businesses and consumers manage their financial lives".

Jeff Stiefler, Digital Insight chairman, president and CEO, adds: "Digital Insight's and Intuit's combined assets and competencies will change the game for small businesses, consumers and the financial institutions that serve them."

The deal is expected to close in the first quarter of 2007.

Following the closing of the acquisition, Digital Insight will continue to operate from facilities in California and Georgia. Intuit says the operations will establish the foundation for its newly formed financial institutions business division within Intuit, with Stiefler serving as president.

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