Intuit Inc. (NASDAQ: INTU) today announced it has signed a definitive agreement to acquire substantially all of the assets of OMware, Inc., a leading provider of business management software for construction companies. The acquisition of OMware is part of Intuit's new "right for my business" strategy to better address the needs of small businesses by providing customers with solutions that are tailored to their specific companies (see separate press release at www.intuit.com/company/press_releases/2001/).
"One of the ways we will execute our strategy is to acquire companies that have developed proven business management solutions for specific industries," said Steve Bennett, Intuit's president and chief executive officer. "OMware is a perfect fit. The company has focused exclusively on providing the right business management solutions for construction companies, and the result is great products and a growing and loyal customer base."
According to Bennett, approximately 300,000 QuickBooks® customers are in construction-related businesses. "The biggest source of new customers for OMware is QuickBooks customers who are looking for broader business management solutions, so this is a logical extension for both companies," said Bennett. "In addition, OMware will benefit from Intuit's strong brand, distribution and user-interface expertise."
A Leader in Construction Management Software
OMware is a leading provider of construction management software solutions. Its flagship The Master Builder product helps construction companies increase profitability through software that handles accounting, estimating, job costing and project management. The Master Builder is available in two editions to serve the needs of both small and large construction companies, with average revenue per customer of approximately $7,000.
"Intuit and OMware share a passion for our customers - for providing the customized solutions business owners need to grow and prosper," said Dan Smith, OMware's founder and CEO. "Teaming with Intuit is a big win for OMware and our customers. We've built great products and have a strong customer base that we can expand even further going forward."
Intuit currently plans to operate OMware as a separate business led by Dan Smith, and will continue to offer its current products and services under The Master Builder brand. Smith will become a vice president at Intuit reporting to Steve Bennett, and virtually all of OMware's employees will be asked to stay with the company. OMware will continue to be based in Sebastopol, California.
OMware was founded in 1980 by Smith, who was then operating a general contracting firm. The company serves approximately 4,000 customers.
Terms of Transaction
Under the terms of the agreement, Intuit will acquire substantially all of the assets of OMware for up to approximately $42 million in Intuit stock. Intuit expects OMware to contribute between $10 million and $20 million in revenue and expects the business to be profitable in fiscal 2002. The acquisition is subject to various closing conditions and is expected to close in November 2001.
Intuit is maintaining its previously announced guidance for fiscal 2002 of pro forma operating income growth in the 25 percent to 30 percent range and revenue growth in the 15 percent to 20 percent range. Intuit is also maintaining its previously announced guidance for the first quarter, which ends Oct. 31, 2001, of revenue between $200 million and $210 million and a pro forma operating loss of between $60 million and $63 million. Due to the seasonality of its businesses, Intuit typically loses money in its first quarter. The company's policy is to not confirm, update or otherwise comment on its financial projections except in compliance with Regulation FD.
Based in Sebastopol, California, OMware, Inc. (Office Management software) provides profit-building construction management software. The Master Builder version 7 (MB7), the company's flagship product, comes in both Solo and Network Editions. OMware has 100 employees, nine regional field offices and a nationwide network of more than 150 Authorized Associates who provide customers with implementation assistance, product training and customization. Visit OMware at www.omware.com.