Intuit agrees $1bn sale of financial services business
01 July 2013 | 6535 views | 0
Intuit has agreed to sell its IFS division - which provides online and mobile banking technology to financial services firms - to private equity firm Thoma Bravo for around $1.025 billion in cash.
The agreement - slated to close in the next few months, subject to regulatory review - will see Thoma Bravo create a stand-alone company focused on providing a digital banking platform to financial institutions.
The deal covers the IFS unit's Internet banking platform, digital payments, mobile banking, Purchase Rewards and FinanceWorks, as well as add-on and third-party offerings.
However, despite being a part of the IFS unit, personal finance management site Mint and OFX connectivity are not part of the deal.
IFS employs around 730 people in the United States and India and made $305 million in revenue (excluding Mint and OFX connectivity) in fiscal 2012. Thoma Bravo has vowed to back the unit with the leadership and resources needed to scale.
Meanwhile, Brad Smith, president and CEO, says Intuit "will sharpen its focus on directly serving consumers and small businesses, and continuing to build our durable competitive advantage in those segments".