Date Posted: 9/15/2009
With Mint deal, Intuit goes from 'bully' to buyerExplore
SAN FRANCISCO (MarketWatch) -- In February, lawyers for Intuit Inc. sent a letter to closely-held rival Mint Software Inc., asking the upstart to back up some of its eye-popping claims with hard numbers.
The letter was subsequently leaked to the public, painting tax-preparation and personal finance software maker Intuit /quotes/comstock/15*!intu/quotes/nls/intu (INTU 27.78, -0.08, -0.29%) as a bully. See related story.
"While we do not wish to suggest that Mint.com is engaging in false advertising, the substantial difference in claimed user numbers over a short period time... is of some concern," Intuit had written. "As a result, we're requesting that you provide us with the substantiation and evidence that you rely upon."
On Monday, however, the relationship took a radically different turn, as the companies announced plans to merge.
Intuit said it will pay roughly $170 million for three-year-old Mint, which now claims to have 1.5 million users of its software used to link personal accounts in order to provide a comprehensive, constantly updated financial picture.
Mint will become a part of Intuit's consumer group, which includes its Quicken personal finance software and TurboTax tax preparation product. Intuit said it intends to maintain a distinct Mint.com offering.
"With this transaction, Intuit will gain another fast-growing consumer brand and a highly successful Software as a Service... offering," Intuit Chief Executive Brad Smith said in a statement.
The acquisition is expected to close in the fourth quarter, Intuit said, and will reduce the company's fiscal 2010 earnings guidance by roughly 3 cents a share.
Intuit shares closed Monday up 0.7% at $27.86.
John Letzing is a MarketWatch reporter based in San Francisco.
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