Broderbund Software, Inc. (NASDAQ: BROD) and Intuit Inc. (NASDAQ: INTU) announced today that they have signed a letter of intent in which Broderbund will acquire Parsons Technology from Intuit. Pursuant to the terms of the proposed transaction, Intuit will retain the Parsons' line of tax preparation software. If the transaction is completed, the acquisition will provide Broderbund the advanced direct-to-consumer (DTC) services offered by Parsons to market a broad product portfolio combining several top-selling consumer software titles including The Print Shop, Quicken Family Lawyer, Family Tree Maker, Living Books, and Click Art. The acquisition is subject to the approval of the Broderbund and Intuit Boards of Directors and government approvals and the satisfaction of other terms and conditions. Additional terms have not been disclosed.
"We are as excited about the cultural fit between the two organizations as we are about the direct-to-consumer capabilities that Parsons' brings," said Joe Durrett, Chief Executive Officer of Broderbund. "It's the people that makes this combination a winner. Parsons' direct-to-consumer expertise and products will allow us to better service our customers between store visits and help drive them back to our retail partners more often to respond to specific DTC promotions."
"Parsons Technology has been an important part of Intuit and has contributed in a significant way to our growth over the last three years," said Bill Campbell, Intuit's President and Chief Executive Officer. "As our strategic focus increasingly shifts to providing the most comprehensive array of financial products, services and information via the Internet, however, we felt we were unable to provide Parsons with the breadth of product they need to support their direct marketing efforts. We feel that this is an outstanding combination of Broderbund's substantial array of consumer titles and Parsons' direct marketing capabilities."
"Retailers just don't have the room to carry each and every software title anymore," added Durrett. "That means the life of our software often exceeds the retail availability of the products. DTC allows us to keep marketing our entire line even after some products are no longer featured in stores."
Broderbund Software, Inc. develops, publishes and markets a broad line of interactive content for use in homes, schools and small businesses. Since its founding in 1980, Broderbund has pioneered innovative award-winning products that take advantage of the latest technologies. Broderbund has a successful track record of identifying and capitalizing on emerging trends through its studio development approach. Broderbund's web site is located at http://www.broderbund.com.
Intuit Inc., a financial software and Web-based services company, develops and markets Quicken, the leading personal finance software; TurboTax, the best-selling tax preparation software; and QuickBooks, the most popular small business accounting software. Intuit's Quicken Financial Network (http://www.qfn.com) offers a variety of news, information and market spaces, including the No. 1 mutual fund Web site, NETworth (http://networth.galt.com), and the most dynamic personal insurance Web site, Quicken InsureMarket sm (http://www.InsureMarket.com). Intuit's products and services enable individuals, small businesses, and financial professionals to better manage their financial lives and businesses. In addition, Intuit's systems and solutions provide many of the nation's leading financial service providers with communication, sales and marketing opportunities that deliver new customers, better serve existing customers, and lower costs.
This press release contains forward-looking statements. There are certain important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements, including but not limited to the successful completion of the acquisition and integration of Parsons and its operations and the competitive environment and continuing uncertainties in the consumer software industry and in consumer software distribution channels. Additional factors that could affect the future performance or Broderbund and Intuit are included in the companies' respective Form 10Ks and Form 10Qs on file with the Securities and Exchange Commission.
