When Did Intuit Sell Quicken?
According to an article from Quicken.com, it was on April 5, 2016 that H. I. G. Capital completed its acquisition of Quicken. However, as early as March 31, 2016, Quicken Inc., was no longer operating as a part of Intuit, Inc. Intuit disclosed its plans last March 3, 2016 of selling Quicken to a Miami-based firm known as the H.I.G. Capital. The financial terms of the said deal were not announced to the public.
Quicken is a personal money management software that Intuit Inc., owned for more than thirty years. This software has become a trusted financial solution by millions of people in many parts of the globe.
The said deal, which was initiated by Intuit Inc., was triggered by the fact that Quicken was no longer contributing much to the company’s total revenue. Twelve months before the company announced its plans to sell Quicken, it was revealed that Quicken was only able to contribute about one percent, which means $51 million, to Intuit’s $4.2 billion total revenue. The move to sell Quicken was also part of Intuit’s plan to focus its business mainly on their most profitable software such as QuickBooks and TurboTax.
Another reason for the sale of Quicken is the fact that this software does not have a subscription offer nor a cloud-based service. And, for Intuit, this is a dead-end for their company as it fails to strengthen the tax ecosystem, unlike what QuickBooks and TurboTax do. In addition to Quicken, Intuit’s Demandforce and QuickBase were also sold to other companies.
Quicken’s Eric Dunn believes that the move to sell the said software would help guarantee that it will thrive with the help of increased investment, advances and improvements. This way, the software will continue to benefit a lot of people for many more years to come. This is not the only software-based company that The H.I.G. Capital invested on. They have also invested in Salary.com, which is a company that provides services related to employee compensation data.
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