RealTime IT News

Intuit Nabs a Payroll Service

Intuit Inc. is on a roll lately, what with plans to enter the online brokerage business and today announcing the acquisition of Fort Worth, Texas-based CBS Employer Services Inc., an outsourced payroll operation.

The Mountain View, Calif.-based company agreed to pay about $78 million for the company, which operates CBS Payroll. Approximately $74.5 million will be paid in cash and the remainder will be paid in Intuit stock.

Intuit said it expects CBS Payroll to contribute in excess of $30 million in revenue in its fiscal year 2003, which begins next August.

"Intuit is committed to providing 'right for my business' solutions to small business owners," said Steve Bennett, Intuit's president and chief executive officer. "Providing the full range of payroll services -- from do-it-yourself products to a complete outsourced solution -- is critical to meeting the different needs of our customers."

He added that down the road, CBS Payroll's service will be integrated with Intuit's QuickBooks business accounting software package.

CBS Payroll was founded in 1966 as an accounting and income tax service for small businesses and began providing payroll services in the 1980s. The company has more than 12,000 customers nationwide.

Intuit plans to combine CBS Payroll's payroll services with its existing outsourced payroll services business. Micheal Sykes, CBS Payroll's chief executive officer, will run the combined business.

Intuit last week established an alliance with Siebert Financial Corp. to offer online and telephone brokerage services for users of its flagship Quicken software and Quicken.com online services. The companies will share revenues and expenses.