Intuit Inc. today announced it has signed a definitive agreement to purchase Homestead Technologies Inc., a leader in Web site and Web store solutions for small businesses. The cash transaction is valued at approximately $170 million, including the assumption of Homestead's outstanding options and restricted stock units.
This transaction will enable Intuit to offer Web site creation and e-commerce solutions that help small businesses acquire and serve customers through the Internet, which are increasingly important factors to entrepreneurial success and business expansion.
"This acquisition supports our growth strategy in small business by addressing an underserved need, and continues Intuit's move beyond financial management solutions into helping small businesses solve other important problems" said Brad Smith, senior vice president of Intuit's small business group. "Homestead helps us solve one of small businesses' highest priorities - attracting customers - by helping them succeed on the Web"
As consumers increasingly shop online, creating a Web presence is one of the most important factors for small businesses. Homestead focuses on helping small businesses succeed on the Web, offering award-winning, affordable, easy-to-use tools and services to help small businesses compete more effectively and win more business.
"Joining Intuit will help us continue pursuing our dream of enabling every small business, entrepreneur and organization to effectively compete by leveraging the power of the Internet" said Justin Kitch, founder and chief executive officer of Homestead Technologies. "We're proud to be one of the highest-rated small business services on the Web today, but we believe we can do better. Becoming part of Intuit will enable us to focus our family of talented and engaged employees on solving important problems by providing products and services that delight our customers"
Establishing a Web presence is still a frustrating and difficult problem for small businesses. Inexpensive, do-it-yourself services and high-priced, do-it-for-me offerings do not always meet their needs. Homestead's solutions offer customers the best of both worlds: personalized do-it-with-assistance setup, and ongoing do-it-yourself management.
The transaction is expected to close during the first calendar quarter of 2008 and is subject to regulatory review and other customary closing conditions. Intuit expects the acquisition to be slightly dilutive in fiscal 2008 and 2009.
After the transaction is complete, Homestead will become part of Intuit's small business group. After the close, Kitch will join Intuit's small business group leadership team, and will manage the Homestead team as currently organized.
Source: Intuit
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