Fresh off yet another tax season in which a high percentage
of U.S. tax filers rely on its annually updated software, Intuit made some
other news April 27 by announcing the acquisition of Demand Force Inc. for Amount
$ 423.5 million in cash. Demand Force, based in San Francisco, produces mobile
device, email, and social-networking tools that help small and mid-size
businesses to automate their marketing and customer communications. Demand Force
also incorporates online user reviews into its package. Mountain View,
Calif.-based Intuit, which makes TurboTax and QuickBooks, said that Demand Force
will accelerate the company's strategic expansion into other types of
high-value software as service products for small businesses. Intuit has
expanded beyond desktop software into delivering cloud-based software and
services. Naturally, this includes its specialities: tax preparation for
households, personal and small-business bookkeeping, and small-business payroll
processing. The company also said Demand force has achieved strong traction in
vertical industries such as health care, dentistry, automotive, optometry and
chiropractics. The transaction is expected to add one to two percentage points
to Intuit's revenue growth in fiscal Year 2013. The deal is expected to close
in May.
Source: E Week
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