Intuit Finds a Buyer for Quicken--Update
March 04 2016 - 2:05PM
Dow Jones News
By Lisa Beilfuss
Intuit Inc. said Friday it would sell its Quicken segment to
private-equity firm HIG Capital for an undisclosed amount, about
six months after the maker of TurboTax said it was looking to pare
down.
In a blog post, Eric Dunn, head of Quicken, said "Quicken will
thrive with increased investment" and that he will remain involved
after the transaction is completed. Miami-based HIG has $19 billion
in capital under management, according to its website.
Intuit didn't offer a deal price for the personal-finance
business. Diane Carlini, a spokeswoman for the company, said Intuit
expects to close the deal in April and indicated that Mr. Dunn has
made an investment and will lead the new business.
The divestiture comes after Intuit last summer flagged several
business units for sale, including collaboration platform QuickBase
and communications software business Demandforce in addition to
Quicken, in a move to focus on its core small-business and
tax-preparation businesses.
Demandforce was sold to Internet Brands in February, and Intuit
continues to shop QuickBase. The spokeswoman said Friday that the
sales of the three units would together result in proceeds of about
$500 million and that Intuit expects to have an update on QuickBase
in the coming weeks.
"With these sales soon completed, Intuit will focus on
accelerating our momentum," Ms. Carlini said.
In its most recent fiscal year, Intuit brought in $51 million in
revenue from Quicken and swung to a loss in the segment. The
company reported $4.2 billion in overall revenue in fiscal 2015 and
earned $365 million, down from $4.51 billion in sales and $897
million in profit a year earlier.
Shares in the company rose 0.8% in afternoon trading, pulling
the stock's year-to-date gain up to 2%.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
March 04, 2016 13:50 ET (18:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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