Intuit today announced the sale of its Financial Services (IFS) division to private equity firm Thoma Bravo for slightly more than $1 billion. The sale does not include Intuit's popular PFM tool, Mint.
The transaction will result in a stand-alone company focused on providing a digital banking platform and mobile solutions to financial institutions. 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. Certain assets that are currently included in the IFS division, including OFX connectivity and Mint.com, will remain with Intuit, the company said.
"Thoma Bravo is gaining a richly talented team that has created an enviable integrated digital banking platform and innovative mobile solution, recognized as the best in the market," said Brad Smith, Intuit president and chief executive officer in a statement. "Intuit will sharpen its focus on directly serving consumers and small businesses, and continuing to build our durable competitive advantage in those segments."
IFS employs around 730 people in the United States and India and made $305 million in revenue (excluding Mint and OFX connectivity) in FY 2012.
In April, Intuit announced that Mint would be made available to financial institutions to integrate into their online and mobile banking services. Intuit, which acquired Mint in 2009, will offer the Mint integration on a limited basis in 2013, before rolling it out to its more than 1,200 financial institution clients in 2014.
The cash transaction is valued at approximately $1.025 billion and is subject to regulatory review and other customary closing conditions. The transaction is expected to close in the next few months.