Intuit To Purchase Demandforce
- Written by
- Published in News Briefs
Intuit Inc. recently agreed to purchase Demandforce, a San Francisco-based Software-as-a-Service company for SMBs. Demandforce’s SaaS, application is used by thousands of small businesses to automate marketing and customer communications, build and maintain a strong online reputation, and raise their profile with local consumers.
The cash transaction, valued at approximately $423.5 million, is expected to close in May 2012, subject to a legally mandated waiting period and other customary closing conditions.
Intuit is a provider of business and financial management solutions for small and medium-sized businesses, consumers, accounting professionals and financial institutions. Its flagship products and services, including QuickBooks, TurboTax and Quicken, are designed to simplify small business management including payment and payroll processing, tax preparation and filing, and personal finance. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that streamline money management for consumers and businesses.
Founded in 1983, Intuit had annual revenue of $3.9 billion in its fiscal year 2011. The company has approximately 8,000 employees with offices in the United States, Canada, the United Kingdom, India and other locations.
Demandforce’s email, mobile and social tools, such as online reviews, are designed to help SMBs enhance customer communications to drive higher retention and growth in their businesses. The company reported strong traction in industries including dental, automotive, spas and salons, optometry and chiropractors, with considerable opportunity for growth.
“Demandforce sits at the sweet spot of Intuit’s SMB customer base and is consistent with our goal to help our customers save time and make money,” said Kiran Patel, EVP and General Manager, Intuit Small Business Group. “With a compelling customer value proposition, SaaS model and high growth profile, Demandforce will provide opportunities to grow Intuit’s customer base and revenue per customer over time.”
Once the transaction closes, Demandforce will become a new division in Intuit’s Small Business Group and will continue to be led by Demandforce President and Founder Rick Berry, who will report to Patel.
According to Berry, the company’s services connect more than 35,000 business users to more than 30 million consumers across 15 distinct industry segments. Demandforce has generated more than $1 billion in incremental revenue for customers, he wrote in a blog post. Demandforce will continue to be run by the same management team that built the company.