Intuit Inc. (NASDAQ: INTU) today announced it has signed a definitive agreement to sell its wholly owned Japanese subsidiary, Intuit KK, to Advantage Partners, Inc., a private equity investment firm located in Japan.
"The sale of Intuit KK enables Intuit to focus its resources on better growth opportunities and businesses where we have a higher level of synergies," said Steve Bennett, Intuit's president and chief executive officer. "In addition, Advantage Partners is well positioned to help grow the company and continue its success in the Japanese market."
Under the terms of the agreement, Advantage Partners will purchase 100 percent of Intuit KK stock for 9.5 billion Yen (approximately $78 million at today's exchange rate). The Japanese company will continue to sell the products under the Yayoi name which has been the number one selling small and medium business software in Japan for the past three years. The sale is expected to close in late January or early February 2003.
Intuit expects to book a net gain of approximately $45 million on the transaction. Because of early indications of additional strength in Intuit's professional accountants solutions, payroll and Canadian businesses, the transaction will not change Intuit's guidance for fiscal 2003.
