Intuit will buy [pdf] financial services provider Digital Insight for $1.35 billion in cash.
Intuit makes the Quicken and QuickBooks financial management software, while Digital Insight provides outsourced Internet banking services to thousands of financial institutions.
The companies will build closer ties between the workflows in Intuit's software and the services from Digital Insight, in a bid to make banking online better for consumers and small businesses, they said in a statement announcing the deal.
"The next generation of online banking will give a more personalised and intelligent user experience that looks more like Amazon or eBay than most financial institutions do today," said Jeff Stiefler, Digital Insight's CEO. Intuit hopes to grow its revenue by persuading more banks to outsource their online banking services instead of building their own, said Steve Bennett, Intuit CEO.
Intuit has agreed to pay $39 in cash for each share in Digital Insight, a premium over its closing share price of $33 on the Nasdaq stock market Wednesday. The companies together will serve close to 5,000 financial institutions, 25 million consumers and seven million small businesses.
Digital Insight will continue to operate from its facilities in California and Georgia. Its business will be part of a new financial institutions business division within Intuit, with Stiefler serving as its president.