Intuit Announces Next Phase of Structural Moves; Organizational Foundation Now in Place
Company to Divest Financial Services, Healthcare Businesses; Aligns Accountant Efforts to Accelerate Global Connected Services Strategy
MOUNTAIN VIEW, Calif. – Jul. 01, 2013 – Intuit Inc. (Nasdaq: INTU) today announced the next step in the company’s quest to build a strong foundation for future growth.
To focus more sharply on its core businesses, the company is divesting its Intuit Financial Services business and is announcing plans to sell the Intuit Health Group.
In addition, the company has realigned the accountant business to provide increased focus on accelerating the company’s two strategic goals: to be the world’s small business operating system and to do the nations’ taxes in the United States and Canada.
“These decisions are the remaining foundational pieces that focus our organization on our biggest opportunities as we execute our global connected services strategy,” said Brad Smith, Intuit president and chief executive officer. “We’ve evolved from a portfolio of business units to an ecosystem of products and services with unique interdependencies. Working together, these assets create amazing opportunities to solve important customer problems while building durable competitive advantage.”
Focus on Strategic Direction
The divestiture of Intuit Financial Services reflects Intuit’s strong commitment to intensify its focus on small business and consumer tax. As a result, the company signed a definitive agreement to sell IFS to Thoma Bravo for $1.025 billion, pending regulatory review.
As part of Thoma Bravo, IFS will be better supported to reach its full potential in the growing digital banking channel. Intuit intends to use existing cash and the proceeds of this transaction to accelerate repurchase of its shares.
Mint.com, currently part of IFS, will remain with Intuit and become part of the Consumer Ecosystem business unit that includes other consumer products such as Quicken.
Intuit also plans to sell the Intuit Health Group. While Intuit had considered healthcare a potential growth opportunity, structural shifts in the market have evolved in such a way that the business no longer fits within the refocused strategy, Smith said. The Intuit Health assets will be a better fit for an organization with a stronger focus on the healthcare industry.
The company expects to classify IFS and Intuit Health Group as discontinued operations. In fiscal 2012, the two planned divestitures contributed combined revenue of approximately $320 million. In fiscal 2013, the two planned divestitures are expected to contribute revenue of approximately $340 million.
Embracing the Power of Accountants
Intuit also announced the realignment of its Accounting Professionals Division. This builds upon organizational changes announced in May designed to capitalize on global opportunities and sharpen its focus on its core businesses. The lineup includes:
The first accounting organization, the Accountant and Advisor Group, will focus exclusively on building a loyal base of accountants around the globe who use and recommend Intuit’s small business solutions.
“The role that accountants and advisors play in small businesses’ success has never been more important,” said Smith. “It will be a critical component as we pursue our goal to be the world’s small business operating system.”
The second accountant organization, ProTax, will focus on winning the professional tax category in North America, capitalizing on the shift to cloud and mobile-based solutions.
“This strengthens our opportunity to work directly with accountants as they purchase our Lacerte and ProSeries software to help them prepare their clients’ taxes. And we have opportunities to accelerate growth as accountants shift online and we expand our “right for my firm” tax software and services lineup,” Smith said.
These changes, combined with the May realignment, become effective Aug. 1 in conjunction with the company’s new fiscal year.
About Intuit Inc.
Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.
Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year 2012. The company has approximately 8,500 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com.
Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including statements about our refreshed company strategy, strategic outcomes potential divestitures and organizational realignment and their impact on Intuit’s business.
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