) has completed its $360 million acquisition of Check Inc., a
mobile bill payment start-up. The company inked the deal on May 27.
Check will be integrated into Intuit's Consumer Ecosystem
Following this acquisition, Intuit customers will be able to
download Check's app on their smartphones to pay their bills in
addition to obtaining bill details, tracking transactions and
making scheduled payments. Check's solution is expected to be
integrated into Intuit's desktop finance management software,
Quicken, and online checkbook, Mint.
Thus, the current acquisition will help Intuit to provide value
added services to its customers such as bill payment options,
thereby enhancing customer experience and expanding its customer
The Check acquisition is expected to bode well for Intuit as
increasing adoption of smartphones and other mobile devices has
paved the way for mobile commerce.
Check's app has 10 million registered users. The app can be
) Play Store and
) iTunes stores for free, while Check generates revenues through
Intuit has been active on the acquisition front of late, with
the intention to diversify its offerings and expand its markets.
The most recent addition to its portfolio, Lettuce, (acquisition
value $30.0 million) is an online inventory and order management
app. The company's strong cash balance ($2.63 billion) and robust
cash flow ($1.53 billion in third-quarter 2014) enable the company
to engage in strategic acquisitions.
We are positive about Intuit's growing small & medium
business exposure and believe that all its acquisitions in the
space, including Demandforce, Prestwick Services, LLC and Docstoc
will continue to support the segment.
However, competition from leading payroll solution provider
) and H&R Block, Inc., seasonality of Intuit's tax business and
ongoing uncertainty in the economy are concerns.
Currently, Intuit has a Zacks Rank #3 (Hold).
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