Filed under: Deals, Google (GOOG), Intuit Inc (INTU), Small business
Over the years, Intuit (NASDAQ: INTU) has been able to beat back Microsoft (NASDAQ: MSFT), and in the process, build a powerful franchise. But investors are wondering: where will the next stage of growth come from?
Well, if you listened to the Q3 conference call, the company is excited about the small-business category.
So, yesterday Intuit announced that it will spend $170 million for Homestead Technologies, which is a provider of websites for small businesses.
True, this is a commodity business. Yet, it can be a way to sell value-add services, such as Google (NASDAQ: GOOG) Adwords, customer relationship management tools, and so on.
On its face, there are some clear synergies, such as with Intuit’s QuickBooks and TurboTax offerings. But, since it’s privately-held, it’s tough the gauge the size of Homestead.
But keep in mind that the company is in a fiercely competitive business, which is undergoing consolidation. So, it should be no surprise that Homestead finally decided to sell out.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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