Intuit, Inc. (INTU) recently completed the sale of Intuit Real Estate Solutions (IRES) to Vista Equity Partners for $128 million.
Based in Ohio, IRES was a part of Intuit’s global business division and a leading provider of software and services to companies in the real estate management and investment industry. This division generated revenues of approximately $74 million in fiscal 2009 and was expected to contribute approximately $80 million to top-line in fiscal 2010.
As a result of the sale, Intuit expects to record an increase of approximately 10-12 cents to earnings per share (EPS) in the second quarter of fiscal 2010, ending Jan 31, 2010.
Vista Equity Partners is a leading private equity firm, focused on investments in software and technology-enabled businesses.
California-based Intuit is a leading provider of business and financial management solutions. Its flagship products and services include QuickBooks, Quicken and TurboTax.
Intuit earlier acquired Mint.com for $170 million. Mint.com provides online personal financial services and has been a direct competitor for Intuit’s Quicken Online.
Management had earlier indicated that it is yet to see any sustained positive trends in consumer spending or new business formations, which suggest a rapid economic recovery.
The company is yet to find a significant improvement in business sentiment among small business customers who use the company’s flagship products such as QuickBooks software and Turbo Tax programs.
Management expects revenues between $3.3 billion and $3.43 billion in fiscal 2010, up 4% – 8%. Earnings per share is projected between 29 cents and 32 cents. Revenues for the second quarter are projected between $800 million and $835 million, up 1% – 6%. Quarterly earnings per share is expected to come between 15 cents and 18 cents.
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