Intuit on Monday said it will pay $170 million in cash for Mint.com, a healthy price to get its hands on more than half a million online personal finance software customers less than two years after launching its own Web-based Quicken Online service.
Mint.com’s technology, which attracted more than 550,000 users tracking their personal finances online, will now be incorporated on the Quicken.com site, Intuit officials said.
In January 2008, Intuit (NASDAQ: INTU) launched a rival online product for $2 per month, but failed to build either the number of users or the functionality that Mint.com was able to create. Intuit started offering the service for free in October.
Mint.com built its revenue stream by referring its users to banks, financial service providers and other advertisers without charging a monthly service fee.
“With this transaction, Intuit will gain another fast-growing consumer brand and a highly successful Software as a Service (SaaS) offering that helps people save and make money,” Intuit CEO Brad Smith said in a statement. “This move will enhance Intuit’s position as a leading provider of consumer SaaS offerings that connect customers across desktop, online and mobile.”
Once the deal closes, Mint.com will become part of Intuit’s Consumer Group, which includes both Quicken and TurboTax products.
Aaron Patzer, Mint.com’s founder and CEO, will become general manager of the Personal Finance group, reporting to Dan Maurer, senior vice president of Intuit’s Consumer Group. Patzer will be responsible for online, desktop and mobile consumer personal finance offerings.
The transaction, expected to close in the fourth quarter of the calendar year, is subject to regulatory review and other customary closing conditions.
Following the closing of the transaction, Intuit expects to reduce its fiscal year 2010 non-GAAP diluted earnings per share guidance by approximately 2 cents, and its GAAP diluted earnings per share guidance by approximately 3 cents.
Intuit, the leading developer of personal financial software, watched its stock trim 2 cents a share in after-hours trading, slipping to $27.82 a share.