Intuit will sell its financial services division (IFS) to Thoma Bravo, a private equity investment firm, for $1.025 billion in cash.
IFS has around 730 employees in several offices in the United States and India.
IFS provides digital banking platform and mobile solutions to financial institutions.
Brad Smith, Intuit president and chief executive officer, said: “Intuit will sharpen its focus on directly serving consumers and small businesses, and continuing to build our durable competitive advantage in those segments.”
The IFS acquisition is in line with Thoma Bravo’s long term strategy of buying technology franchises with significant recurring revenue.
Orlando Bravo, managing partner at Thoma Bravo, said: “We look forward to accelerating the company’s growth as an independent business through our buy-and-build principles.”
In fiscal 2012, IFS (excluding Mint and OFX connectivity services, which will stay with Intuit) contributed revenue of approximately $305 million.
In fiscal 2013, IFS (excluding Mint and OFX connectivity services) is expected to contribute revenue of approximately $325 million.
Intuit had annual revenue of $4.15 billion in its fiscal year 2012.
In software, Thoma Bravo has invested in 26 companies that have completed 60 add-on acquisitions to produce total annual earnings of approximately $1 billion.
