Intuit announced plans Nov. 30 to acquire Digital Insight, a leading provider of online banking services, for roughly $1.35 billion in cash.
The merger will unfold in the first quarter of 2007, Intuit officials said.
"The combination of two industry leaders will put Intuit in an excellent position to bring a new generation of online banking solutions to market in a way that will redefine the way small businesses and consumers manage their financial lives," said Steve Bennett, Intuit president and CEO, in a statement.
Intuit provides financial management software and together with Digital Insight will serve more than 5,000 financial institutions, nearly 25 million consumers and almost 7 million small businesses, Intuit officials said.
"Online banking is growing rapidly, but todays solutions dont meet the needs of most small businesses and many consumers," said Jeff Stiefler, Digital Insight chairman, president and CEO, in a statement. "Digital Insights and Intuits combined assets and competencies will change the game for small businesses, consumers and the financial institutions that serve them."
Digital Insight provides on-demand banking services to midmarket banks and credit unions in the United States. After the merger is finalized, Digital Insight business operations will set the foundation for a new financial institutions business division within Intuit, with Stiefler serving as that units president, Intuit officials said. Digital Insights existing facilities in California and Georgia will remain intact, officials added.
Founded in 1983, Intuit has emerged as a top provider of business and financial management solutions for consumers, small and midsize businesses, and accounting professionals. It finished fiscal year 2006 with $2.3 billion in revenue, company officials said.
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