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Vista Equity Partners to acquire Intuit Real Estate Solutions

Intuit has signed a definitive agreement to sell Intuit Real Estate Solutions to Vista Equity Partners for approximately USD128m in cash.

Vista Equity Partners is a private equity firm with more than USD2.5bn in committed equity capital, focused on investments in software and technology-enabled businesses.

IRES, formerly known as Management Reports, is part of Intuit’s global business division and is a provider of software and services to companies in the real estate management and investment industry. Based in Highland Hills, Ohio, it has approximately 340 employees in its worldwide offices, serving more than 1,700 customers.

“Intuit Real Estate Solutions is a great business with a bright future,” says Brad Smith (pictured), Intuit’s president and chief executive officer. “As we’ve focused our strategy on providing connected services that help consumers and small businesses, the Intuit Real Estate Solutions business model and the enterprise customers it serves are no longer a strategic, long-term fit for Intuit.”

“We are long-term investors in enterprise application software businesses that are committed to being leaders in their markets,” adds Robert F. Smith, managing principal of Vista Equity Partners. “We are impressed by Intuit Real Estate Solutions’ suite of products, its track record of customer service and its global customer base. We look forward to working with them to help them reach their full potential.”

The transaction, subject to regulatory review and customary closing conditions, is expected to close by the end of Intuit’s second quarter on 31 January. IRES will be treated as a discontinued operation.

Intuit does not expect to change its fiscal year 2010 non-GAAP operating income or earnings per share guidance as a result of the sale. Intuit Real Estate Solutions’ contribution to Intuit’s non-GAAP operating income was approximately USD4m in fiscal year 2009 and was expected to be approximately USD8m in fiscal year 2010. Intuit expects that the approximately two cent reduction in non-GAAP earnings per share resulting from the sale of IRES will be offset by other savings.

Intuit Real Estate Solutions revenue totalled approximately USD74m in fiscal year 2009 and was expected to be approximately USD80m in fiscal year 2010. Intuit still expects its fiscal year 2010 revenue to grow between four and eight per cent when the IRES revenue is excluded from both fiscal year 2009 results and fiscal year 2010 guidance.
Intuit expects to record an increase of approximately ten to 12 cents in GAAP earnings per share as a result of the sale, which is not expected to have a material effect on fiscal year 2011 earnings.

Intuit is a provider of business and financial management solutions for small and mid-sized businesses, financial institutions, including banks and credit unions, consumers and accounting professionals.

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