Intuit Inc. Has Bought Homestead Technologies for $170 Million

Posted Nov 26, 2007

â??Joining Intuit will help us continue pursuing our dream of enabling every small business, entrepreneur and organization to effectively compete by leveraging the power of the Internet.â?
â??Weâ??re proud to be one of the highest-rated small business services on the Web today, but we believe we can do better. Becoming part of Intuit will enable us to focus our family of talented and engaged employees on solving important problems by providing products and services that delight our customers.â?
-Justin Kitch, founder and CEO of Homestead Technologies.

Intuit Inc. (NASDAQ:INTU) is a company that produces financial and tax software. Intuit is incorporated in Delaware and is HQed in Mountain View, Calif. Intuit has a $9.52 billion market cap and announced today that they would be acquiring Homestead Technologies for roughly $170 million in cash, outstanding options, and restricted stock units. Some of Intuit’s more known software includes TurboTax, Quicken, and QuickBooks.

â??This acquisition supports our growth strategy in small business by addressing an underserved need, and continues Intuitâ??s move beyond financial management solutions into helping small businesses solve other important problems,â? stated Brad Smith, Senior VP of Intuit‘s small business division. â??Homestead helps us solve one of small businessesâ?? highest priorities â?? attracting customers â?? by helping them succeed on the Web.â?

Homestead Technologies is a web hosting service based in Menlo Park, Calif. Homestead has evolved several times since its start in 1998. Homestead has a few web site building tools and has several other e-commerce services. Homestead has about 2,000 templates. I’d consider Homestead to be a little bit more of a professional version of Yahoo! GeoCities. Homestead sold Photosite, one of their web hosting photography services to United Online in March 2005.

Kitch has a blog at: One of Kitch’s more controversial blog posts was Maybe you should fire that customer?