Intuit Inc. (Nasdaq:INTU) today announced it has signed a definitive
agreement to purchase Homestead Technologies Inc., a leader in Web site
and Web store solutions for small businesses. The cash transaction is
valued at approximately $170 million, including the assumption of
Homestead's outstanding options and restricted stock units.
This transaction will enable Intuit to offer Web site creation and
e-commerce solutions that help small businesses acquire and serve
customers through the Internet, which are increasingly important factors
to entrepreneurial success and business expansion.
"This acquisition supports our growth strategy
in small business by addressing an underserved need, and continues Intuit’s
move beyond financial management solutions into helping small businesses
solve other important problems,” said Brad
Smith, senior vice president of Intuit’s small
business group. "Homestead helps us solve one
of small businesses’ highest priorities –
attracting customers – by helping them succeed
on the Web.”
As consumers increasingly shop online, creating a Web presence is one of
the most important factors for small businesses. Homestead focuses on
helping small businesses succeed on the Web, offering award-winning,
affordable, easy-to-use tools and services to help small businesses
compete more effectively and win more business.
"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,” said Justin Kitch, founder and
chief executive officer of Homestead Technologies. "We’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.”
Establishing a Web presence is still a frustrating and difficult problem
for small businesses. Inexpensive, do-it-yourself services and
high-priced, do-it-for-me offerings do not always meet their needs.
Homestead’s solutions offer customers the
best of both worlds: personalized do-it-with-assistance setup, and
ongoing do-it-yourself management.
The transaction is expected to close during the first calendar quarter
of 2008 and is subject to regulatory review and other customary closing
conditions. Intuit expects the acquisition to be slightly dilutive in
fiscal 2008 and 2009.
After the transaction is complete, Homestead will become part of Intuit’s
small business group. After the close, Kitch will join Intuit’s
small business group leadership team, and will manage the Homestead team
as currently organized.
About Homestead Technologies
Homestead Technologies Inc. provides a suite of easy-to-use,
non-technical Web site creation products, e-commerce solutions and
online marketing products and services for small businesses and
organizations that wish to establish or enhance their presence online.
More than 12 million people have used Homestead's award-winning design,
e-commerce, marketing and hosting capabilities to create feature-rich,
professional-quality Web sites in minutes. For nearly 10 years,
Homestead has helped small businesses succeed online and has been the
recipient of numerous awards including: CNET "Editor's Choice;" PC
magazine "Editor's Choice;" PC World "Best of the Web;" and Forbes "Best
of the Web." Homestead is based in Menlo Park, Calif., and its services
are available at www.homestead.com.
About Intuit
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 serve
businesses and consumers with innovative solutions.
Founded in 1983, Intuit had annual revenue of $2.67 billion in its
fiscal year 2007. The company has approximately 8,000 employees with
major offices in the United States, Canada, the United Kingdom and other
locations. More information can be found at www.intuit.com.
Forward-Looking Statements
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 expects, believes or anticipates will
or may occur in the future are forward-looking statements, including,
particularly, the expected dilutive effect of the transaction for
Intuit, statements about the potential benefits of the proposed
transaction to Intuit, including the ability to provide new services and
products to customers, statements about the expected benefits to current
and potential customers, and the expected closing of the
proposed transaction. All forward-looking statements are based on the
opinions and estimates of Intuit’s
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 transaction is not
consummated or is not consummated within the expected timeframe; the
risk that the expected benefits of the proposed acquisition are not
realized; the risk that disruption from the transaction may make it more
difficult to maintain relationships with customers, employees, partners
or suppliers. For information regarding risks related to Intuit, 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, 2007, available on Intuit’s
website at www.intuit.com/about_intuit/investors.
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.
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