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Intuit Acquires EmployeeMatters

Intuit Inc., a provider of Web-based financial services, Thursday acquired EmployeeMatters Inc., an online employee administration outsourcing service.

As part of the purchase agreement, EmployeeMatters' partner company, FrontLine Capital Group, will receive about $34 million in total consideration, consisting primarily of Intuit common stock. FrontLine is a holding company that develops and manages companies servicing small- and medium-size businesses.

The union will allow EmployeeMatters to expand its business, noted Elliot Cooperstone, chief executive officer of EmployeeMatters. "We anticipate that Intuit's expertise in the small business market and their extensive customer base will enable us to take our business to the next level."

Services offered by EmployeeMatters includes a virtual Human Resources department enabling clients to effectively manage employee administration and HR functions, such as payroll, benefits, retirement plans, business insurance and HR compliance.

The transaction is subject to customary closing conditions, including certain regulatory approvals, and is expected to close no later than January 31, 2001.