Intuit said Tuesday that it has acquired PayCycle, a privately held online payroll service for small businesses, for roughly $170 million.
PayCycle has more than 85,000 small business customers.
In a statement, Intuit said PayCycle will allow it to offer online payroll services quickly and enter the software as a service market for small businesses. Meanwhile, PayCycle's partnerships with financial institutions will help Intuit's payroll business overall.
The deal, which will shave about 2 cents a share in earnings from Intuit's fourth quarter results, is expected to close in the third quarter.