Intuit Inc.’s sale of Intuit Real Estate Solutions to Vista Equity Partners, a private equity firm for $128 million in cash is expected to close Jan. 31, according to company officials.
Intuit (Nasdaq: INTU), based in Mountain View, Calif., announced in early December that it had signed a definitive agreement with Vista to sell the software provider, formerly known as Management Reports, Inc. Intuit is known for high-profile financial products such as Quicken and Turbo Tax.
Based in Highland Hills, Ohio, Intuit Real Estate Solutions is part of Intuit’s global business division and is a major provider of software and services to real estate management and investment firms. It has approximately 340 employees globally and more than 1,700 customers.
Vista Equity Partners focuses on investments in software and technology-enabled businesses.
“Intuit Real Estate Solutions is a great business with a bright future,” said Brad Smith, Intuit’s president and chief executive officer. “As we’ve focused our strategy on providing connected services that help consumers and small businesses, the Intuit Real Estate Solutions business model and the enterprise customers it serves are no longer a strategic, long-term fit for Intuit.”
However, the software operation does fit into Vista’s strategy. “We are long-term investors in enterprise application software businesses that are committed to being leaders in their markets,” said Robert Smith, managing principal of Vista Equity Partners.
Vista is interested in Intuit Real Estate Solutions’ products and its global customer base, said Smith. “We look forward to working with them to help them reach their full potential.”
Intuit Real Estate Solutions’ revenue totaled $74 million in fiscal year 2009 and was expected to rise to $80 million in fiscal year 2010.
Intuit said it expects its fiscal year 2010 revenue to grow 4% to 8% when IRES revenue is excluded from its fiscal 2009 results and 2010 guidance.