Intuit Inc. (NASDAQ: INTU) today announced it has completed its acquisition of The Flagship Group, the holding company of American Fundware, Inc., a leading provider of accounting and business management solutions to the public sector, including nonprofit organizations, universities and individual government agencies.
"Acquiring American Fundware is part of Intuit's strategy to provide superior end-to-end business management solutions for organizations in specific vertical industries," said Steve Bennett, Intuit's president and chief executive officer. "The combination of American Fundware's leading solutions and strong management team with Intuit's large customer base, brand and distribution provides a tremendous growth opportunity."
American Fundware is the second acquisition Intuit has made to expand its portfolio of "Right for My Business" vertical business management solutions. In November 2001, Intuit acquired OMware, Inc., a provider of business management solutions for construction companies. "We're seeing very positive early results with our OMware acquisition, both in terms of strong revenue growth and a dramatic increase in the pipeline of active prospects," said Bennett. "These initial results reinforce our enthusiasm about the opportunity for American Fundware – and for future vertical business management acquisitions."
"The FundWare suite of products deliver specialized mission-oriented functionality the public sector demands, including general ledger, project and grant accounting, budget management and advanced allocations, as well as standard bookkeeping and accounting modules. FundWare is ranked #1 by the Nonprofit Financial Center in its latest independent review of 19 accounting software packages. It has received the top rating from CPA Software News in its 2001 review of nonprofit software packages."
American Fundware will operate as a separate business unit, Intuit Public Sector Solutions, based in Denver. The unit is led by Michael Potts, who was the chief executive officer of American Fundware, and will continue to offer its current products and services under the Intuit Fundware brand.
Intuit acquired all of the outstanding shares of The Flagship Group for approximately $22 million in Intuit stock and $4 million in cash. Intuit announced it had reached an agreement to acquire American Fundware on May 9, 2002. The transaction closed on May 31, 2002.
