Intuit, a provider of business and financial management solutions, has signed a definitive agreement to purchase Homestead Technologies, a provider of web site and web store solutions.
The cash transaction is valued at approximately $170 million, including the assumption of Homestead’s outstanding options and restricted stock units. The transaction will enable Intuit to offer web site creation and e-commerce solutions that help small businesses acquire and serve customers through the internet.
Brad Smith, senior vice president of Intuit’s small business group, said: This acquisition supports our growth strategy in small business by addressing an underserved need, and continues Intuit’s move beyond financial management solutions into helping small businesses solve other important problems.
Justin Kitch, founder and CEO of Homestead Technologies, said: Joining Intuit will help us continue pursuing our dream of enabling every small business, entrepreneur and organization to effectively compete by leveraging the power of the Internet.
The transaction is expected to close during the first calendar quarter of 2008 and is subject to regulatory review and other customary closing conditions.