Accounting software maker
on Tuesday announced it will acquire a credit- and-debit-card-processing firm for $116 million in cash as part of its effort to target small businesses.
The acquisition of Calabasas, Calif.-based
Innovative Merchant Solutions
, expected to close later this month, will enable Intuit to expand its offerings to small businesses beyond accounting into merchant account services, Intuit said in a press release.
Founded in 1999, privately held IMS provides credit-and-debit-card-processing services for small businesses nationwide. IMS reported net revenue of about $25 million in 2002 and is profitable. Intuit expects IMS to contribute to its revenue and profit growth but said it will not impact fiscal year 2004 guidance.
IMS CEO Joe Kaplan will stay with Intuit and all of the company's 110 employees will be asked to join Intuit.
Shares of Intuit jumped $1.20, or 2.6%, to close Tuesday at $46.71. Shares dipped to $46.69 in recent trading.