Intuit Inc. announced it has signed a definitive agreement to purchase Homestead Technologies Inc. for $170 million. Homestead offers two ecommerce solutions to customers of its web-hosting services: users can add a PayPal shopping cart to its basic service, or they can use Homestead Storefronts, which is based on eBay's ProStores technology (formerly Kurant). Homestead also offers a paid-search service called Searchlight.
Intuit Senior Vice President of Small Business Group Brad Smith said, "This acquisition supports our growth strategy in small business by addressing an underserved need, and continues Intuit's move beyond financial management solutions into helping small businesses solve other important problems. Homestead helps us solve one of small businesses' highest priorities - attracting customers - by helping them succeed on the Web."
Homestead Technologies founder and CEO Justin Kitch said, "Joining Intuit will help us continue pursuing our dream of enabling every small business, entrepreneur and organization to effectively compete by leveraging the power of the Internet. We're proud to be one of the highest-rated small business services on the Web today, but we believe we can do better. Becoming part of Intuit will enable us to focus our family of talented and engaged employees on solving important problems by providing products and services that delight our customers."
The transaction is expected to close during the first calendar quarter of 2008 and is subject to regulatory review and other customary closing conditions. After the transaction is complete, Homestead will become part of Intuit's small business group, and Kitch will join Intuit's small business group leadership team and will manage the Homestead team as currently organized.
http://www.homestead.com
