Intuit Inc. (NASDAQ: INTU) today announced it has signed a definitive agreement to acquire Management Reports, Inc. (MRI), a leading provider of business management software solutions for commercial and residential property managers. The acquisition, when completed, will enable Intuit to become a key provider in the $400 million global property management software segment.
"MRI is a great fit for Intuit's 'Right for My Business' strategy, enabling us to serve another industry with unique needs -- property management and real estate," said Steve Bennett, Intuit's president and chief executive officer. "MRI has consistently demonstrated its ability to meet customer needs with outstanding, real-world solutions and a talented team of sales, implementation and support professionals. As a result, they've developed a strong, growing and loyal customer base."
MRI will be Intuit's third acquisition to broaden its portfolio of superior, end-to-end business management solutions for companies in specific vertical industries. Intuit acquired OMware, Inc., a provider of business management solutions for the construction industry, in November 2001. It completed its acquisition of public sector software leader American Fundware, Inc., last week.
"The synergies between OMware's Master Builder product and Intuit's brand, distribution and customer base have produced great early results - both in terms of accelerated revenue growth and a dramatically larger pipeline of active prospects," said Bennett. "We're excited about the opportunities to drive similar synergies with our acquisition of MRI."
A Leader in Property Management Software
Founded in 1971, privately held MRI offers a full range of solutions targeted to the office, industrial, retail and residential real estate segments - from in-house, standalone software to Web-based outsourced solutions. The company supports more than 4,500 software installations worldwide, with clients ranging from owners and managers of smaller office, industrial, retail and residential properties to global real estate investors and insurance companies. MRI has approximately 300 employees in 13 locations worldwide, most of whom are based in the company's headquarters in Cleveland.
MRI is a recognized leader in providing business management software solutions for the mid- and top-tier of the real estate management industry, particularly companies in the real estate advisor and investor segment. "Like Intuit, MRI has a long history of developing technology solutions to simplify business management," said Bob Lasser, MRI's chief executive officer.
"This combination will enable us to leverage Intuit's brand and customer relationships to accelerate our growth while also allowing us to enhance our quality assurance processes, customer service and Web-based solutions," said Lasser. "At the same time, it will enable us to bring our customers - many of which have 100-250 employees - a broader range of 'Right for My Business' solutions, including payroll and other employer services."
Intuit currently plans to operate MRI as a separate business unit led by Lasser, and will offer MRI's current products and services using both the Intuit and MRI brands. MRI's products include MRI™ for Windows® and MRI™ for the Web. Lasser will become a vice president at Intuit reporting to Steve Bennett, and virtually all of MRI's 300 employees will be asked to stay with the business. MRI will continue to be based in Cleveland.
Terms of Agreement
Under the terms of the agreement, Intuit will acquire the outstanding shares of MRI for approximately $92 million in cash. Intuit expects MRI to contribute between $45 million and $50 million in revenue in fiscal year 2003, which begins
Aug. 1, 2002, and expects it to be slightly accretive to pro forma earnings per share in fiscal 2003. The acquisition is expected to close in the fourth quarter of Intuit's fiscal 2002 (May 1, 2002 - July 31, 2002), so the company does not expect the acquisition to have a material impact on fiscal 2002 results.
Intuit reiterated the guidance for 17-22 percent revenue growth and 25-30 percent pro forma earnings per share growth for fiscal 2003 that it provided on May 15 in connection with its third-quarter fiscal 2002 earnings announcement. Intuit's policy is to not confirm, update or otherwise comment on its financial projections except in compliance with Regulation FD. The projections in the guidance provided above are forward-looking statements and are subject to a number of risks and uncertainties as described in "Cautions about Forward-Looking Statements" below.
About Intuit Inc.
Intuit Inc. (NASDAQ: INTU) is the leading provider of financial software and Web-based services for consumers, small businesses and accounting professionals. Its flagship products and services, including Quicken®, QuickBooks®, Quicken TurboTax® and Quicken Loans® simplify personal finance, small business management and payroll processing, tax preparation and filing and home loans.
Founded in 1983, Intuit has annual revenue of more than $1 billion and reaches 25 million customers with nearly 6,000 employees in 13 states and four countries. More information can be found at www.Intuit.com.
