Intuit sells financial services unit for $1.03B to refocus on tax software

The tax software maker is heading back to its roots — tax preparation software — by selling its financial services division to a private equity firm.

Maker of all shiny tax things Intuit said on Monday that it is selling its financial services unit to private equity firm Thoma Bravo for about $1.03 billion in cash.

Read this

Intuit acqui-hires Elastic Intelligence team for 'DIY' app builders

The finance software provider has bought Elastic Intelligence, the force behind the Connection Cloud, self-touted to be the "first and only" real-time SQL-based Platform-as-a-Service

Read More

The move comes as the firm, which creates and operates tax preparation service TurboTax, refocuses its energies on its core tax-preparation software-making business.

Intuit's financial services division (IFS) provides online software to banks and financial institutions. Thoma Bravo managing partner Orlando Bravo said the acquisition of IFS is "consistent with our strategy of buying great technology franchises with significant recurring revenue."

Proceeds of the deal will be used to buy back shares, the company said in a statement.

The shift in strategy will help Intuit focus on its burgeoning base of individuals and small businesses alike., currently a part of IFS, will stay with Intuit and form part of the Consumer Ecosystem business.

The transaction is expected to close in the coming few months, though a specific deadline was not given. The deal may be subject to regulatory review, the statement noted.