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Intuit Buys Online Payroll Service Provider
2:15 PM EDT Wed. Jun. 03, 2009
Intuit expects to complete the acquisition of Palo Alto, Calif.-based PayCycle, which is subject to regulatory review and other closing conditions, sometime during the third quarter.
Intuit said the acquisition will expand the company's move into software-as-a service offerings for small businesses and supports its "connected services" strategy to provide customers with online access to Intuit products and services. Those connected service offerings already provide Intuit with more than half of its revenue, according to the company.
PayCycle serves more than 85,000 small businesses. And its partnerships with financial institutions will give Intuit the opportunity to offer integrated payroll services to an even greater number of customers, the company said.
Once the acquisition is complete, PayCycle will become part of Intuit's small-business group. PayCycle CEO Jim Heeger, a former Intuit CFO, will stay on for six months as a strategic adviser to assist with the integration of the two companies.
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