Intuit (Nasdaq:INTU) has completed its acquisition of Digital Insight Corp.
The acquisition closed on Feb. 6, following approval by Digital Insight's stockholders. The total purchase price was approximately $1.33 billion, which includes options that were assumed by Intuit upon the closing of the acquisition. The purchase price was financed in part with the proceeds of a $1 billion bridge loan facility.
The combination of Intuit and Digital Insight will help redefine the relationship between financial institutions and their small business and consumer customers. Initially, the joined companies will create offerings that will help financial institutions provide new, innovative solutions to help them manage their business and financial lives. The acquisition brings together Intuit's strong brands and proven customer-driven development process with Digital Insight, a leading technology provider in online banking.
There are currently 26 million small businesses in the United States. Eighty-two percent - some 22 million - of these businesses are the do-it-yourself types who use various nonintegrated systems, including pencil and paper.
"The rapid growth of the small business sector, combined with the growing adoption of online banking for those small business owners, creates an opportunity for us to transform the way they run their business," said Steve Bennett, Intuit president and chief executive officer. "With Intuit and Digital Insight working together, small business owners will view their financial institution as a valued, long-term partner that helps them manage their business finances."
Currently, more than 43 million households are doing some type of online banking. Financial institutions currently offer primarily transactional solutions that help consumers pay bills, view balances and see cleared checks. What's missing is an interactive financial management offering that will delight consumers by helping them plan for the future and reach their financial goals. Intuit and Digital Insight are uniquely positioned to deliver such solutions.
Digital Insight Chief Executive Officer Jeff Stiefler has joined Intuit as president of Intuit's financial institutions division.
Starting today, Intuit will begin integrating the two companies' operations, category development, distribution models and customer support organizations to ensure a smooth transition and immediate value for customers, employees and partners. Together, the companies will serve 5,000 financial institutions, nearly 25 million consumers, and nearly 7 million small businesses.