Summary
Intuit Inc. announced on November 15, 2000, a definitive agreement to acquire EmployeeMatters, Inc., a provider of web-based human resources management services. This strategic move is designed to expand Intuit's offerings to small and mid-sized businesses, integrating payroll, benefits, and tax filing solutions through the internet. The acquisition aims to solidify Intuit's position in the small business market by providing a comprehensive "virtual HR department". The transaction is valued at approximately $39 million, payable in Intuit stock, with a potential price adjustment of up to 20% based on Intuit's stock performance. The deal has received board approvals from both companies and is anticipated to close by the end of Intuit's second fiscal quarter of 2001. This acquisition represents a significant step in Intuit's strategy to offer a broader suite of essential business management tools.
Key Highlights
- 1Intuit Inc. (INTU) enters into an Agreement and Plan of Merger with EmployeeMatters, Inc.
- 2EmployeeMatters, Inc. provides web-based human resources management services, including benefits, insurance, payroll, and tax filing for small and mid-sized companies.
- 3The acquisition aims to expand Intuit's "virtual HR department" offering to its small business customers.
- 4The transaction is valued at approximately $39 million, to be paid in Intuit stock.
- 5The deal's valuation is subject to a 20% variation based on Intuit's stock price formula.
- 6Both companies' boards of directors have approved the merger.
- 7The acquisition is expected to close by January 31, 2001 (end of Intuit's Q2 FY2001).