Intuit Inc. (NASDAQ: INTU), a leading provider of small business accounting and management solutions, today (Dec 21) announced it has completed its acquisition of EmployeeMatters Inc., a Stamford, Conn.-based provider of human resource management, benefits and payroll services via the Internet. Intuit announced it had reached an agreement to acquire EmployeeMatters on Nov. 16, 2000.
“The acquisition of EmployeeMatters advances Intuit’s strategy to expand our product and service offerings to help small business owners better manage the mission-critical tasks of their businesses,” said Steve Bennett, Intuit’s president and CEO. “The acquisition will allow us to enter the high-growth employee benefits space and leverage our existing customer base to drive more revenue per customer.”
Intuit currently plans to promote EmployeeMatters’ products under both the QuickBooks and EmployeeMatters brands. Intuit also plans to develop the capability for customers to integrate the data from their EmployeeMatters products and services within future versions of certain Intuit small business products.
Intuit acquired EmployeeMatters in a registered stock transaction, which closed yesterday and was valued at approximately $41 million, including assumed liabilities. In addition, Intuit provided EmployeeMatters with approximately $8 million in interim funding to support its operations prior to closing. As publicly stated earlier, Intuit expects no material impact from this transaction to its fiscal 2001 revenue growth target of 22 percent and pro forma operating income growth target in the low 30 percent range. Intuit’s pro forma operating income includes operating results of acquired companies, but excludes, among other things, amortization and other acquisition-related charges.
EmployeeMatters will be operated as a separate business unit, headquartered in Stamford, Conn. Elliot Cooperstone, who had been EmployeeMatters’ CEO will continue to lead the business unit as an Intuit vice president.
Intuit’s develops and markets QuickBooks small business accounting software; Quicken personal finance software; and TurboTax tax preparation software. Intuit has been developing its QuickBooks Internet Gateway platform of connected e-services for small businesses. Intuit recently launched QuickBooks for the Web, an online version of its best-selling packaged software.