Intuit (NASDAQ: INTU ) announced today that private equity firm Thoma Bravo will acquire its financial services division, IFS. The transaction is set to close within the next few months, and is estimated to be worth $1.025 billion. The acquisition will be executed in cash, and is subject to regulatory review.
Following the transaction, Thoma Bravo will assist IFS in becoming a standalone company focusing on digital banking and mobile solutions for financial institutions. Some assets, including personal finance website Mint.com, will remain with Intuit.
Brad Smith, Intuit's president and CEO, said in a statement that the acquisition will create a number of positive opportunities for IFS, and allow Intuit to focus more closely on "directly serving consumers and small businesses, and continuing to build our durable competitive advantage in those segments."
IFS has 730 employees in several offices in the United States and India. Intuit said it will use the proceeds from the deal to accelerate the repurchase of its shares.
Last week, Thoma Bravo announced it was acquiring Keynote Systems, a leader in Internet and mobile cloud testing and monitoring, in an all-cash deal valued at $395 million.