Thoma Bravo has completed the previously announced acquisition of Intuit Financial Services, a division of Intuit, Inc., to form a stand-alone company that provides digital banking and payments capabilities to financial institutions. The transaction, valued at $1.025 billion, establishes a new company with a familiar name in banking, Digital Insight.
“We look forward to working with the Digital Insight management team to expand upon its industry leading products and solutions for financial institutions and grow the business organically and through strategic acquisitions,” said Orlando Bravo, a managing partner at Thoma Bravo. “As a stand-alone company, Digital Insight will be able to focus on providing an innovative digital banking platform and aggressively expand its customer base.”
Digital Insight provides an integrated digital banking platform for 11 million users, widely recognized as one of the best in the market. Its mobile banking suite is the industry benchmark, with a 4.7+ app store rating and best in class user adoption of more than 4 million customers. Digital Insight was first founded in 1995 as a pioneering Internet banking provider. The company was purchased by Intuit in February 2007 and was renamed Intuit Financial Services. With this transaction it returns to its named roots. Digital Insight is headquartered in Menlo Park (www.digitalinsight.com) (www.ifs.intuit.com).
“This marks a new chapter for Digital Insight,” said Jose Resendiz, vice president, product management at Digital Insight. “We will remain focused on creating and delivering solutions that help mid-market financial institutions be at the center of improving their customers’ financial lives so bankers can engage in deep, profitable relationships. Working with Thoma Bravo enables us to further enhance our focus on meeting the business needs of financial institutions.”
“Thoma Bravo has a proven track record working with innovative software companies and the acquisition of Digital Insight marks our 27th platform company investment,” said Holden Spaht, partner at Thoma Bravo. “We look forward to applying Thoma Bravo’s strategy of business enhancements and add-on acquisitions to accelerate the company’s growth and extend its market leadership position.”
“After a thorough branding study, we chose a name that honors the history of Digital Insight, a brand synonymous with delivering value to financial institutions,” said Jennifer Lewis, vice president of marketing. “Still, this is not the old Digital Insight. It’s a company with some of the newest, flexible, service oriented architecture and a cloud-based infrastructure; industry leading mobile solutions; rich data sources that empower financial institutions to meet their customers unique needs; and— perhaps most important— an innovative and customer-driven company. Our new logo and brand visuals are designed to convey these strengths.”
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 for small business management and payroll processing, personal finance, and tax preparation and filing. Founded in 1983, Intuit had annual revenue of $4.1 billion in its 2012 fiscal year. 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 • 8-2-13