Intuit Inc. (INTU: Quote) announced that it is divesting its Intuit Financial Services business and is announcing plans to sell the Intuit Health Group.
Intuit noted that it signed a definitive agreement to sell Intuit Financial Services business or IFS to Thoma Bravo for $1.025 billion, pending regulatory review. 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, the company noted.
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, the company said. The Intuit Health assets will be a better fit for an organization with a stronger focus on the healthcare industry, the company noted.
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.
Intuit also announced the realignment of its Accounting Professionals Division. 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 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.
Intuit noted that the changes, combined with May month realignment, become effective August 1 in conjunction with the company's new fiscal year.
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by RTT Staff Writer
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