Thoma Bravo, private equity firm, would buy Intuit Inc's financial services unit worth US$1.03 billion. Intuit said the deal was made because it wanted to focus on its core tax-preparation software enterprise.
TurboTax, a tax-preparation software manufactured by Intuit, is the company's current core business. The abnormally poor tax filing season hurt the company's income in the past six months. This led to Intuit's decision to just focus on what was essential.
During the early trading, the company's stocks increased by 2.6%. However, it plunged down to 7% in the past three months.
According to a statement made by Intuit, it planned to utilize the earnings from the deal by repurchasing shares.
Intuit Financial Services was anticipated to keep revenue of around US$325 million in fiscal 2013. IFS was an online and banking software provider to financial institutions.
Intuit added that its other assets like OFX connectivity and Mint.com were not part of the negotiations. Therefore, Intuit would be able to keep them.
Finally, the Company shared that it was also preparing to sell its health group. It had restored its accountancy business as a fundamental segment of its reorganization.
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