Intuit Inc. (NASDAQ: INTU) announced today it has reached a definitive agreement to acquire the assets of Lacerte Software Corporation, a Dallas-based developer of professional tax preparation software used by tax preparers. Under terms of the agreement, Intuit will acquire substantially all of the assets and liabilities of the privately held Lacerte and a related services company for $400 million in cash.
"This acquisition fulfills a key strategic objective for Intuit," said Bill Harris, executive vice president of Intuit. "The combination of Intuit and Lacerte adds a new operating unit with a strong track record of recurring revenue and high profits and strengthens our commitment to the professional tax preparation business."
"Intuit is the most innovative company in financial software and by virtue of its culture, commitment to great products and to serving customers, a perfect match for Lacerte," said Larry Lacerte, president and founder.
Lacerte is a highly regarded provider of professional tax preparation software, electronic filing services, educational seminars and self study tutorials used by accountants and tax preparers. Well known among professional tax preparers for the quality of its products, Lacerte's input sheet-based user interface and reputation for support have earned it consistently strong customer loyalty and high renewal rates.
Intuit's ProSeries software, which also has earned a loyal customer base of professional tax preparers, is organized around a user interface based on actual tax forms and contains functionality substantially different from that found in Lacerte's software. Following the acquisition, Intuit will continue giving professional tax preparers a choice between the two distinct products.
Under the terms of the agreement, Lacerte's business will operate as a subsidiary of Intuit. Lacerte's senior management team will continue with the same responsibilities, with the exception of Larry and Philip Lacerte who are retiring from day-to-day management of the company. Both will remain on the board of directors of the new subsidiary company. Lacerte's current Chief Operating Officer, Randy Zeller, will become President with the closing of the transaction. Larry Wolfe, Intuit's Senior Vice President for Tax, will oversee the tax business of the combined company.
The acquisition, which has been approved by the boards of directors of both companies and by the shareholders of Lacerte, is subject to regulatory approval. The acquisition is expected to close in the summer of 1998.
