Intuit Inc. (NASDAQ: INTU) today announced that it has signed a definitive agreement to acquire substantially all of the assets of Tulsa, Okla.-based Tax and Accounting Software Corporation (TAASC). The acquisition is being made by Intuit's Lacerte Software Corporation subsidiary and is expected to close by the end of the day.
"TAASC is an excellent fit for Intuit," said Steve Bennett, Intuit's president and chief executive officer. "The acquisition will provide us with added technology and a solid customer base, and it will help us meet our overall growth objectives in the future."
TAASC (www.taascforce.com) offers a fully integrated suite of software tools for accounting and tax professionals. The company, which was founded in 1980 and is privately held, has a strong track record of innovation and customer service.
"Teaming with Intuit represents a clear win for TAASC customers," said Tim Kloehr, TAASC's founder. "Intuit has set the standard for excellence in professional tax preparation products and services, meeting the needs of virtually every type of tax practice through its Lacerte and ProSeries software. We believe this acquisition will continue TAASC's vision of providing the best solutions possible, backed by high-quality service and support."
Intuit provides the professional tax preparation community with a comprehensive line of integrated and reliable tax preparation software under both its Lacerte® and ProSeries® brands. "The addition of TAASC is consistent with our long-term growth strategy," said Bennett. "The acquisition is further evidence of our commitment to grow our professional tax business by providing innovative, leading edge solutions to tax and accounting professionals."
Under the terms of the agreement, TAASC's operations will become part of Intuit's Dallas-based professional tax division. TAASC's tax customers will have the option of converting to either Intuit's Lacerte or ProSeries products, and Intuit is developing a conversion program to make this transition as smooth as possible. TAASC's EasyACCT accounting products, which allow accountants to prepare financial statements and forms, will be added to Intuit's existing product line and will integrate with future versions of Lacerte and ProSeries products.
Operations at TAASC's Tulsa headquarters will be scaled back, with Intuit offering regular or temporary employment to approximately 100 of TAASC's 350 employees. TAASC will provide all its employees, including those who accept jobs with Intuit, at least 60 days of salary. Intuit will provide TAASC employees with information about other job openings at Intuit and will offer outplacement assistance to TAASC employees who are not offered Intuit employment in Tulsa.
When Intuit gives financial guidance, it has typically taken into account the expected impact of anticipated transactions that have not yet been disclosed. The company's guidance for fiscal 2001 assumed completion of the TAASC acquisition during the second half of fiscal 2001. It is the company's policy not to confirm, update or otherwise comment on expected financial results except in compliance with Regulation FD.
Tim Redmond, TAASC's executive vice president, will join Intuit's professional tax division and will help manage the transition.
