Intuit Inc. (INTU) today announced it has entered into a definitive agreement to purchase Check, a Palo Alto, Calif.-based leader in mobile bill pay that serves 10 million registered users.
The acquisition will help accelerate Intuit's ability to offer bill pay across small business and personal finance products and create opportunities to retain, attract and serve additional customers.
Check's highly-rated mobile app automates and consolidates the bill pay process all in one place, reducing the complexity for consumers. Check customers can monitor bills and accounts, receive alerts when bills are due or funds are low, and pay bills automatically.
Intuit's personal finance solutions, Quicken and Mint, have historically provided customers a look back at their transactions to help them plan for the future. Consumers increasingly want mobile apps that allow them to take action with their money and help them accomplish every day financial tasks, such as bill pay and household budgeting. U.S. consumers were expected to pay more than 14.7 billion bills in 2013, according to an Aite Group report, citing the most recently available data. Online and mobile payments were expected to account for nearly half of all bills paid that year.
"Intuit started when founder Scott Cook wanted a better way to balance the family checkbook," said Barry Saik, senior vice president and general manager of Intuit's Consumer Ecosystem Group. "Our commitment to solving important personal finance problems is steadfast. By joining with Check, we continue to address consumer needs and are taking the next step in the evolution of personal finance capabilities."
Through the acquisition, Intuit gains a critical consumer payments capability that will allow the company to streamline interactions between consumer and small business customers, consistent with Intuit's vision of enabling products to work together as an ecosystem.
Once the transaction closes, Check will join Intuit's Consumer Ecosystem Group. The Israel site will become an Intuit location, adding to the company's growing global portfolio. Guy Goldstein, Check's co-founder and CEO, will serve as vice president and report to Saik.
"Mobile is a key driver of bill pay opportunities," said Goldstein. "We look forward to merging our talent, mobile mindset and spirit of innovation with Intuit to build products that delight consumers and become a part of their everyday financial lives."
The transaction, valued at approximately $360 million for total cash and other consideration, is expected to close in the fourth fiscal quarter of 2014, subject to the expiration of applicable regulatory waiting periods and the satisfaction of other customary closing conditions.