Intuit to Acquire Demandforce for $423.5 Million
Intuit Inc. announced a plan to acquire Demandforce, a company which helps small business automate marketing and other communications. With Demandforce comes their software as a service (SAAS) application which is already used by thousands of small business customers. The SAAS model fits very well with intuits current customer support efforts and will go a long way to add value to the Intuit brand.
Kiran Patel, executive vice president and general manager, Intuit Small Business Group comments on the acquisition of Demandforce:
“Demandforce sits at the sweet spot of Intuit’s SMB customer base and is consistent with our goal to help our customers save time and make money,”
“With a compelling customer value proposition, SaaS model and high growth profile, Demandforce will provide opportunities to grow Intuit’s customer base and revenue per customer over time.”
Expected to close in May, the acquisition will cost Intuit around $425.3 million, but it is expected to add a couple points to their revenue growth in fiscal year 2013. There won’t be many changes at Demandforce, most of their staff will stay on and be observed into Intuit’s workforce.
Demandforce president and founder Rick Berry comments on the acquisition by Intuit:
“We believe this transaction greatly benefits Intuit and Demandforce’s customers, partners, employees and shareholders,”
“Intuit is one of the most respected companies and brands serving SMBs and represents a great opportunity to continue our rapid growth and expansion into new markets.”
Intuit has been in the business of financial management for small business since 1983 and has grown to employ more than 8,000 employees today. They have offices in the United States, Canada, the United Kingdom, India and select other locations.