Intuit to Sell Financial Services Division for $1 Billion (July 2, 2013)
July 2, 2013
Intuit Inc. has agreed to sell its financial services division, known as IFS, to private equity firm Thoma Bravo for just over $1 billion. The deal, which is still subject to regulatory approval, would cover Intuit’s corporate-targeted Internet banking platform, digital payments, mobile banking and purchase rewards business. Certain assets currently within the IFS division, including personal finance management site Mint, will remain with Intuit.
In addition to earning Intuit more than $1 billion, the sale will enable the company to streamline its business, according to Intuit President and CEO Brad Smith. “Intuit will sharpen its focus on directly serving consumers and small businesses, and continuing to build our durable competitive advantage in those segments,” Smith said. For Thoma Bravo, the IFS division represents a major foothold in providing online and mobile banking technology to financial institutions, according to the equity firm. The deal is expected to be approved within the next few months, creating a new, standalone entity owned by Thoma Bravo.
Based in Westlake Village, Calif., the IFS division employs 730 people in the U.S. and India. In the 2012 fiscal year, the division (excluding the assets not included in the sale) contributed $305 million to Intuit’s coffers.