Intuit, Inc. , the maker of widely used financial management software programs, extended its reach into the accounting ledgers of the nonprofit industry Thursday by signing a definitive agreement to acquire Denver-based The Flagship Group.
The Flagship Group is the parent company of American Fundware, Inc., a provider of business management software geared toward large nonprofit organizations, government agencies, and universities.
Mountain View, Calif.-based Intuit, maker of programs such as Quicken, Quickbooks, and Quicken TurboTax, currently serves a significant number of smaller nonprofit organizations, but the acquisition will further boost its Right for My Business vertical business management solutions and enable the software maker to tap into the coffers of an additional 1.6 million nonprofit organizations nationwide.
Earlier this year, Intuit acquired OMware, Inc. as part of a strategy to fatten its Right For My Business portfolio. OMware is the maker of financial management solutions for the construction industry. Intuit also recently acquired Fort Worth-based CBS Employer Services, Inc., the parent company of CBS payroll.
Intuit will acquire all outstanding shares of The Flagship Group for $20 million in Intuit stock and $4 million in cash.
Representatives for Intuit expect the marriage of the two financial management superpowers to reap in an additional $15-20 million in revenue for the coming year.
“American Fundware is a great match for Intuit and our strategy to provide superior end-to-end business management solutions for organizations in specific vertical industries,” said Steve Bennett, Intuit president and chief executive officer. “By focusing exclusively on providing comprehensive and customized solutions that are right for the public sector, American Fundware has developed a strong, loyal, and growing customer base.”
According to company representatives, Intuit will operate American Fundware as a separate business, but all products will be under the Intuit brand.
Michael Potts, American Fundware’s chief executive officer, will become vice president of Intuit but will remain at the helm of Fundware and its employees, none of whom, said Intuit, will be laid off. The company will also remain headquartered in Denver.
“This combination will enable us to take full advantage of Intuit’s strong brand and distribution channel to fuel additional growth,” said Potts. “At the same time, it will enable us to bring a broader range of solutions to help our customers be even more successful.”
The acquisition is expected to be final by the end of July 2002.
