MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Intuit Inc. (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.
Additional information regarding the expected financial impact of the acquisition will be provided during Intuit’s second quarter fiscal 2007 earnings conference call scheduled for 1:30 p.m. PST on Feb. 22. To hear the conference call, dial 866-206-6509 in the United States or 703-639-1108 from international locations. No reservation or access code is needed.
Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax® software, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation software suites for professional accountants. The company’s financial institutions division, anchored by Digital Insight, provides on-demand banking services to help banks and credit unions provide new, innovative solutions for small businesses and consumers.
Founded in 1983, Intuit had annual revenue of $2.3 billion in its fiscal year 2006. The company has more than 8,100 employees with major offices in 12 states across the United States, and facilities in Canada and the United Kingdom. More information can be found at www.intuit.com.
This news release includes "forward-looking statements" which are subject to safe harbors created under the U.S. federal securities laws. All statements included in this press release that address activities, events or developments that Intuit and Digital Insight expect, believe or anticipate will or may occur in the future, including, particularly, statements about the potential benefits of the transaction, including the potential benefits and synergies of the proposed acquisition to financial institutions and their customers and to small businesses, and the growth of the small business market and its adoption of online banking, are forward-looking statements. All forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include: the risk that the expected benefits of the transaction are not realized; the risk that disruption from the transaction may make it more difficult to maintain relationships with customers, employees, partners or suppliers; the risk that future products and services may not be successful or achieve broad acceptance in the markets targeted by the combined company; the risk that the target markets for the combined company’s products and services will not grow as anticipated; unforeseen costs and expenses relating to the integration of the companies; and the risk that Intuit will not be able to successfully integrate Digital Insight's technology, products, services, personnel and operations and achieve planned synergies or capitalize on anticipated market opportunities. For information regarding other related risks, see discussion of risks and other factors in documents filed by Intuit with the Securities and Exchange Commission from time to time, including Intuit's Form 10-K for the year ended July 31, 2006 and Form 10-Q for the quarter ended Oct. 31, 2006, as well as the Form 10-K filed by Digital Insight for the year ended December 31, 2005 and Form 10-Q filed by Digital Insight for the quarter ended September 30, 2006. Forward-looking statements represent the judgment of the management of Intuit as of the date of this release, and Intuit disclaims any intent or obligation to update any forward-looking statements.