Intuit Finalizes Sale of QuickenInsurance
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Intuit Inc. Thursday finalized the sale of selected assets of its QuickenInsurance business to InsWeb Corp.
As part of the deal, Intuit received a 16.6 percent equity stake -- valued at about $11.4 million -- in InsWeb, and the two companies also sealed an agreement making InsWeb the exclusive consumer insurance aggregator for Intuit's Quicken.com and QuickenInsurance Web sites and certain consumer desktop products. Intuit will take a share in the associated revenues, subject to certain minimums. However, the company also agreed to certain conditions on its InsWeb equity, including restrictions on reselling its shares for at least 18 months, voting the shares and acquiring additional shares.
"We think these agreements are a win for both Intuit and InsWeb -- and we think Intuit's customers will benefit with InsWeb's solutions," said Steve Bennett, president and chief executive officer of Intuit.
Bennett is expected to be appointed to InsWeb's board.
Intuit said the transaction should not affect its fiscal 2001 revenue. It expects the deal will generate between $3 million and $5 million in pro forma operating income, distributed evenly between its third and fourth fiscal quarter results. The company anticipates $10 million in costs associated with the transaction, though it said the one-time costs will not be reflected in its pro forma operating results.