Private equity manager H.I.G Capital has agreed to purchase the Quicken business from Intuit Inc., one of three planned divestitures for the personal and small business financial software maker, Quicken said on Friday.
In a blog post, Eric Dunn, Quicken’s senior vice president and general manager, said that H.I.G. was found after a six-month search for a suitor. Dunn said that the investor is interested in Quicken because of its demonstrated success, and because the business will benefit from increased investment.
“They decided to invest in the Quicken business because of their deep appreciation of the Quicken product, our loyal customers and Quicken’s commitment to helping consumers manage their finances,” Dunn said in the blog post. “They are confident, as am I, that Quicken will thrive with increased investment, leading to product improvements and advances that will allow Quicken to continue to serve you well for decades to come.”
Financial terms of the deal were not disclosed, but Inuit said in an earnings statement last month that it expected to see about $500 million in total proceeds from the sale of Quicken and two other units, Demandforce and QuickBase. A representative for Intuit, Diane Carlini, confirmed an agreement between the company and H.I.G., and said that Dunn would be taking an ownership stake through the transaction as well. He will continue to lead the unit after the sale, she said.
Dunn said that investments made by Quicken’s new ownership will be used to help further develop the company’s Mac software offering as well as its mobile services.
“We all know Quicken could use a little TLC — a little tender loving care — to be as great as it deserves be,” Dunn said in a video statement on the blog. “And working with H.I.G. Capital, we’re committed and certain to accomplish that.”
Quicken personal finance software was the first offering from Intuit when the company launched in 1984. In August, Intuit announced that it would look to sell the Demandforce, QuickBase and Quicken businesses, in order to focus on its small business and tax segments through products such as QuickBooks and TurboTax. Internet Brands said in January that it had agreed to buy Demandforce, a marketing software service provider, for an undisclosed sum.
“Divesting Demandforce, QuickBase and Quicken enables both Intuit and these businesses to focus on meeting the needs of their respective customers, while allowing Intuit to accelerate our ability to deliver on our objectives,” Intuit Chief Financial Officer Neil Williams said in a statement at the time.
Intuit generated $4.2 billion in revenue last year with a net income of $365 million, according to its annual report. Quicken was responsible for $51 million in revenue and a $136 million net loss, the report said.
H.I.G. is a global private equity firm that says it has $19 billion of capital under management. It has invested in and managed more than 200 companies since its founding in 1993. H.I.G.’s current portfolio includes more than 100 companies with total sales of more than $30 billion, the firm said.
A representative for H.I.G. did not immediately respond to a request for comment on Friday.
H.I.G. is represented by Kirkland & Ellis LLP, with a team led by Jeffrey Seifman, Luke Guerra, Tana Ryan, Nicole Amerian and Michele Cumpston.
Intuit is represented by Latham & Watkins LLP.