Intuit Inc. (NASDAQ: INTU) today announced it has acquired Omaha-based Income Dynamics, Inc., a leading provider of software that provides tools for taxpayers to determine the fair market value of items donated to charities. The acquisition advances the execution of Intuit's multi-year strategy to drive growth in TurboTax® by providing different taxpayers segments with a full range of 'Right for Me' solutions.
"Income Dynamics' ItsDeductibleTM software is an excellent fit for Intuit and our 'Right for Me' TurboTax strategy," said Steve Bennett, Intuit's president and chief executive officer. "Customers can use the software to quickly and easily obtain the fair market values of hundreds of commonly donated items - including clothing, toys and household goods. This enables taxpayers to stop guessing and claim the full deduction to which they're entitled."
According to the Internal Revenue Service, more than one-third of all taxpayers itemize their deductions, and approximately 89 percent of that group makes charitable deductions. An even higher proportion of TurboTax customers itemize their deductions. "We offered ItsDeductible software to TurboTax customers this past season through a partnership with Income Dynamics and were very happy with the results," said Bennett. "Customers told us the software made their taxes less taxing - and saved them money."
Gordon Whitten, Income Dynamics' president and chief executive officer, will continue to lead the ItsDeductible team. Last month, Whitten was named Technology Entrepreneur Of The Year® for Iowa/Nebraska by Ernst & Young LLP.
Terms of the Agreement
Intuit acquired all of the outstanding shares of privately held Income Dynamics in a stock transaction valued at approximately $10 million. The acquisition closed on July 11, 2003. Intuit does not expect Income Dynamics to make a material change to its fiscal 2003 or fiscal 2004 guidance.
