Under the terms of the agreement, Intuit will pay $39 in cash for each Digital Insight share. Digital Insight provides online banking services and Intuit makes tax and financial-management software.
Shares of Digital Insight closed Wednesday at $33, and the stock has a 52-week high of $38.22. Intuit slipped 2.8% to $31 in early trading Thursday.
Intuit said the combined companies will serve more than 5,000 financial institutions, nearly 25 million consumers and almost 7 million small businesses. The transaction is expected to close in the first quarter of next year.The acquisition will probably cut Intuit's adjusted earnings by 2 cents to 3 cents a share in the current fiscal year but slightly add to profits in fiscal 2008.