Intuit Sheds QuickBase as Part of Plan to Pare Down
March 08 2016 - 2:51PM
Dow Jones News
By Lisa Beilfuss
TurboTax maker Intuit Inc. agreed to sell its QuickBase business
to private equity firm Welsh, Carson, Anderson & Stowe for an
undisclosed amount, wrapping up a trifecta of divestitures intended
to shed non-core assets.
A QuickBase spokesman said the company will remain in Cambridge
and will continue to be led by Allison Mnookin. Intuit will become
one of QuickBase's largest paying customers, according to the
spokesman.
The deal concludes a string of planned segment sales that Intuit
announced about six months ago. Intuit, based in Mountain View,
Calif., had said it intended to pare down and focus on its core
small-business and tax-preparation software businesses. Last week,
the company said sold its personal-finance business Quicken to
private-equity firm HIG Capital, a month after it sold its
communications software unit Demandforce to Internet Brands.
The company hasn't disclosed deal values for the individual
segments, but a spokeswoman said Friday that sale of the three
units would together result in proceeds of about $500 million.
In its most recent fiscal year, ended in July, QuickBase brought
in $11 million in profit, up from $7 million a year earlier. The
segment represented 3% of Intuit's bottom line. The three
businesses the company has recently shed together brought in $236
million in revenue in fiscal 2015, or 5.6% of total sales, but they
resulted in a loss of $118 million.
Shares in the company, up 3.6% this year, added 0.6% in
afternoon trading Tuesday
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
March 08, 2016 14:36 ET (19:36 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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