Intuit completes Demandforce acquisition

Intuit has successfully acquired software-as-a-service application Demandforce for more than $420 million, in what is the company's third-largest acquisition to date.

Intuit has acquired Demandforce for around $423.5 million as part of efforts to accelerate the company's growth into software-as-a-service products for small- and medium-sized businesses.

The company said on April 27 when it announced it would acquire the neighbouring startup, that Demandforce would sit "at the sweet spot" of Intuit's SMB customer base. By offering email, mobile and social tools to help its clients communicate with their customers can help drive higher customer retention rates and boost growth.

Demandforce is used by thousands of SMBs to automate marketing and communications with customers. With more than 35,000 small business customers in North America, the acquisition will allow Intuit draw in larger customers also.

The acquisition, Intuit's third largest deal to date, will likely perpetuate the company's consistent quarter-on-quarter growth. Over 15 years, Intuit has seen more than 80 percent growth on the top line.

The deal completed in an all-cash deal and is expected to add to Intuit's revenue growth in the 2013 fiscal year.