Summary
This 8-K filing from Intuit Inc. reports on the sale of its Quicken Loans mortgage business and its subsidiary Title Source, Inc. to BRFC LLC on July 31, 2002. The transaction involved the transfer of stock of a newly created subsidiary, Rock Acquisition Corporation, which held the sold businesses. Intuit received $33 million in cash and a $23.3 million promissory note, retaining a 12.5% non-voting equity interest in the new entity. The sale is expected to result in an estimated pre-tax gain of $23.3 million for Intuit. Intuit also agreed to provide a transitional line of credit of up to $375 million to the divested business and will continue to earn market interest rates on any outstanding balances. Furthermore, Quicken Loans will license the 'Quicken Loans' trademark and enter into a five-year distribution agreement for mortgage services on Quicken.com. This divestiture signifies Intuit's strategic shift away from the mortgage lending business.
Key Highlights
- 1Intuit Inc. sold its Quicken Loans mortgage business and subsidiary Title Source, Inc. to BRFC LLC on July 31, 2002.
- 2The sale generated $33 million in cash and a $23.3 million promissory note for Intuit.
- 3Intuit retained a 12.5% non-voting equity interest in the divested Quicken Loans business.
- 4An estimated pre-tax gain of $23.3 million is expected from the sale.
- 5Intuit will provide a transitional line of credit of up to $375 million to the buyer for a limited period.
- 6Quicken Loans will continue to license the 'Quicken Loans' trademark and use Intuit's Quicken.com platform for mortgage services.