Intuit Inc. (NASDAQ: INTU) today announced it has completed its acquisition of CBS Employer Services, Inc., the parent company of CBS Payroll, one of the leading privately held full-service outsourced payroll companies. The acquisition is part of Intuit's "Right for My Business" strategy to provide tools and services that address the unique needs of each small business, including business management services that go beyond accounting.
"The acquisition of CBS Payroll enables Intuit to better serve small businesses that want to completely outsource their payroll function," said Steve Bennett, Intuit's president and chief executive officer. "Payroll represents a significant opportunity for additional growth for Intuit, and we now have the management team, technology and sales force to more aggressively pursue that opportunity."
CBS Payroll provides comprehensive desktop and Internet-based payroll solutions for more than 12,000 customers nationwide, including payroll processing and record-keeping, payroll tax processing and management reporting. CBS Payroll's sales force is based throughout the U.S. and will begin to cross-sell Intuit's other employer services.
Intuit has combined CBS Payroll's payroll services with its existing outsourced payroll services business, with Michael Sykes running the combined business. Sykes had served as chief executive officer of CBS Payroll.
Intuit acquired the outstanding shares of CBS Payroll for approximately $78 million. Approximately $74.5 million was paid in cash and the remainder was paid in Intuit stock. Intuit announced its plans to acquire CBS Payroll on May 8, 2002. The transaction closed on June 7, 2002.
