Intuit Inc. (INTU) Sells Financial Services Division For $1.03 Billion To Focus On Tax Software
Intuit Inc. (NASDAQ:INTU) has decided to sell their financial services division for $1.03 billion as part of a goal to focus on their tax software. The buyer of Intuit’s financial services division is private equity company Thoma Bravo. Intuit’s most popular software is a tax preparation program called TurboTax.
Intuit’s financial services division (IFS) offers online software for banks and financial companies. Intuit plans on using the proceeds of the sale to repurchase shares. IFS is expected to hit revenues of $325 million in the fiscal 2013 year.
Some of IFS’ assets that will not be part of the sale includes Mint.com and OFX connectivity. These assets will remain part of Intuit. Intuit is also going to sell their health group.
“These decisions are the remaining foundational pieces that focus our organization on our biggest opportunities as we execute our global connected services strategy,” stated Intuit president and chief executive officer Brad Smith. “We’ve evolved from a portfolio of business units to an ecosystem of products and services with unique interdependencies. Working together, these assets create amazing opportunities to solve important customer problems while building durable competitive advantage.”