Intuit Jumps on Unit's $1B Sale to Thoma Bravo

NEW YORK ( TheDeal) - Intuit ( INTU) was gaining Monday after the financial-management software company said it will sell a portion of its business to Thoma Bravo LP, the Chicago-based private equity firm.

Thoma Bravo will acquire Intuit's financial services division, IFS, which generated revenue in 2012 of about $305 million and is expected to post sales of $325 million in 2013. The all-cash deal is valued at $1.025 billion. Intuit's IFS division has about 730 employees based in the U.S. and in India.

Shares of Mountain View-based Intuit were gaining 3.6% to $63.30 in afternoon trading. Intuit said it will use the proceeds to accelerate share repurchases.

Intuit plans to shift its operations toward a business and services software strategy following on last month's acquisition of Elastic Intelligence Inc. to bolster its cloud-based software offerings, Intuit QuickBase. In April, Intuit bought Demandforce Inc., which develops customer relationship management software for small businesses, for about $424 million.

As part of the deal, Intuit will retain personal finance startup, which it acquired in 2009 for $170 million. Intuit properties include Quicken business management software and tax tool TurboTax.

Thoma Bravo -- which which others software companies that focus on data security and financial management -- said it might engage in M&A to develop the IFS business.

"We look forward to accelerating the company's growth as an independent business through our buy-and-build principles," Thoma Bravo managing partner Orlando Bravo said in a statement.

Kirkland & Ellis LLP's Chicago-based corporate partners Theodore Peto and Gerald Nowak advised Thoma Bravo. The private equity firm didn't reveal whether it used financial advisers.

Lead lawyers for Intuit were Latham Watkins LLP's Luke Bergstrom, Dan Cunha, Jay Metz, Julie Crisp, J.D. Marple, Heather Bromfield, Kirt Switzer, Una Au, Karen Silverman and Josh Holian. Qatalyst Partners' Jonathan Turner and James Kim represented Intuit on the banking side.

Written by Jonathan Marino in New York

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