Summary
Intuit Inc. (INTU) has announced a definitive agreement to acquire Digital Insight Corporation for approximately $1.35 billion in cash, on a fully diluted basis. The transaction, structured as a merger, will result in Digital Insight becoming a wholly-owned subsidiary of Intuit. This strategic move is expected to significantly enhance Intuit's offerings in the financial services technology sector. The acquisition price of $39.00 per share for Digital Insight common stock represents a substantial premium, and the deal includes the assumption of Digital Insight's outstanding stock options, with specific terms for conversion and payout for both vested and unvested options, including those held by non-employee directors. The transaction is subject to customary closing conditions, including regulatory review and approval by Digital Insight's stockholders, with no specific closing or meeting dates yet determined.
Key Highlights
- 1Intuit Inc. to acquire Digital Insight Corporation for approximately $1.35 billion cash.
- 2The acquisition is structured as a merger, making Digital Insight a wholly-owned subsidiary of Intuit.
- 3The purchase price is $39.00 per share of Digital Insight common stock.
- 4Intuit will assume and convert Digital Insight's outstanding stock options.
- 5Specific provisions are in place for the treatment of stock options held by non-employee directors and for restricted stock.
- 6The transaction is subject to regulatory approval and Digital Insight stockholder approval.
- 7The merger agreement was entered into on November 29, 2006.