Receive updates via email:

 Updates via RSS

Tag Cloud

Blog Archive

Thursday, November 30, 2006

Intuit to Acquire Digital Insight - Yay!

Well, the reason for this post, as most of you know I currently work for Digital Insight Corporation. I think this is an extremely exciting annoucement from Digital Insight and represents an exciting opportunity with Intuit! more news and excitement to come, I am sure! The press release is included below.

Intuit to Acquire Digital Insight
Stage Set for New Generation of Online Banking Solutions

MOUNTAIN VIEW, Calif. & CALABASAS, Calif., Nov 30, 2006 (BUSINESS WIRE) -- Intuit Inc. (Nasdaq:INTU) and Digital Insight Corp. (Nasdaq:DGIN) have signed a definitive agreement for Intuit to acquire Digital Insight. Under the terms of the agreement, Intuit will pay $39 per share in cash for each Digital Insight common share. The total purchase price is approximately $1.35 billion on a fully diluted basis.

The acquisition will bring together Digital Insight, a leading provider of online banking services, and Intuit, the leading provider of financial management software, to millions of small businesses and consumers. Together, the companies will serve more than 5,000 financial institutions, nearly 25 million consumers and nearly 7 million small businesses. The acquisition will combine Intuit's culture of customer-driven innovation and leading brands with Digital Insight's best-in-class distribution and application service provider model.
"The combination of two industry leaders will put Intuit in an excellent position to bring a new generation of online banking solutions to market in a way that will redefine the way small businesses and consumers manage their financial lives," said Steve Bennett, Intuit president and chief executive officer.

With the acquisition, Intuit will be able to combine work flows in its financial management tools with online banking capability offered by Digital Insight to create new, easier, and better-value offerings for consumers and small businesses.

"Online banking is growing rapidly, but today's solutions don't meet the needs of most small businesses and many consumers," said Jeff Stiefler, Digital Insight chairman, president and chief executive officer. "Digital Insight's and Intuit's combined assets and competencies will change the game for small businesses, consumers and the financial institutions that serve them. In addition to the clear business benefit of this proposed acquisition, both companies have already had the opportunity to work closely together to develop the mutual trust and respect that is a critical prerequisite for any business combination to be successful."

Following the closing of the acquisition, Digital Insight's business operations will continue to operate from its existing facilities in California and Georgia. The Digital Insight business operations will establish the foundation for a newly formed financial institutions business division within Intuit, with Stiefler serving as that unit's president.

The transaction is subject to regulatory review, Digital Insight shareholder approval and other customary closing conditions. After closing, expected in the first calendar quarter of 2007, Digital Insight will become part of Intuit, and Digital Insight stock will cease trading. Intuit plans to finance the transaction with a combination of existing cash balances and up to $1 billion of debt financing, although there are no financing contingencies in the merger agreement. The transaction is expected to be dilutive to Intuit by two to three cents per share on a non GAAP basis in its current fiscal year and slightly accretive on a non GAAP basis in fiscal 2008.

A live audio webcast conference call is available at The call begins today at 5:30 a.m. Pacific. A replay of the audio webcast will remain on the Intuit and Digital Insight Web sites for one week after the conference call. Intuit has also posted this press release on its Web site and will post the conference call script shortly after that call ends.

The conference call number is 866-837-9782 in the United States or 703-639-1420 from international locations. No reservation or access code is needed. A replay of the call will be available for two weeks by calling 888-266-2081 or 703-925-2533 for international callers. The replay access code is 1004956.

About Digital Insight Corporation
Digital Insight Corporation (Nasdaq:DGIN) is the leading provider of on-demand banking services to mid-market banks and credit unions in the United States. The company's extensive portfolio of on-demand applications is hosted in its world-class data center and securely delivered via the Internet. Outsourcing the management of online banking services to Digital Insight empowers financial institutions to generate new sources of revenue, increase customer retention and realize increased cost efficiencies. For more information, visit

About Intuit Inc.
Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses, consumers and accounting professionals. Its flagship products and services, including QuickBooks(R), Quicken(R) and TurboTax(R) software, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries(R) and Lacerte(R) are Intuit's leading tax preparation software suites for professional accountants.

Founded in 1983, Intuit had annual revenue of $2.3 billion in its fiscal year 2006. The company has nearly 7,500 employees with major offices in 13 states across the United States, and offices in Canada and the United Kingdom. More information can be found at