Thoma Bravo has entered into an agreement acquire the Financial Services division (IFS) of Intuit for $1.025 billion in cash. Certain assets that are currently included in the IFS division, including OFX connectivity and Mint.com, will remain with Intuit. The transaction is expected to close in the next few months.
“Thoma Bravo’s acquisition of IFS is consistent with our strategy of buying great technology franchises with significant recurring revenue,” said Orlando Bravo, managing partner at Thoma Bravo. “We look forward to accelerating the company’s growth as an independent business through our buy-and-build principles.”
The transaction will result in a stand-alone company focused on providing a digital banking platform and mobile services to banks and credit unions. The transaction includes an Internet banking platform, digital payments, mobile banking, Purchase Rewards, FinanceWorks, and digital banking add-on solutions as well as third-party solutions. In fiscal 2012, IFS (excluding Mint and OFX) had revenue of approximately $305 million. In fiscal 2013, IFS is expected to have revenue of approximately $325 million. IFS is based in Westlake Village, CA and has 730 employees in several offices in the United States and India (www.ifs.intuit.com).
“IFS is the premier provider of online and mobile banking software to financial institutions, markets which should continue to see secular growth and further end-user adoption,” said Holden Spaht, partner at Thoma Bravo. ”Thoma Bravo will continue to support the company’s mission of providing best-in-class products to support its large base of customers and end users.”
Thoma Bravo provides equity and strategic support to management teams building growing companies. The firm originated the concept of industry consolidation investing, which seeks to create value through the strategic use of acquisitions to accelerate business growth. Thoma Bravo currently manages approximately $4 billion of equity capital. The firm was founded in 1981 and has offices in Chicago and San Francisco (www.thomabravo.com).
Intuit is a provider of business and financial management services for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its products and services include QuickBooks, Quicken and TurboTax and are used to for small business management and payroll processing, personal finance, and tax preparation and filing. Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year 2012. The company has approximately 8,000 employees with offices in the United States, Canada, the United Kingdom, India and other locations (www.intuit.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-1-13
