Intuit Acquires Homestead for $170 Million

http://mms.businesswire.com/bwapps/mediaserver/ViewMedia?mgid=114882&vid=2

Intuit, which previously acquired small retailer marketing firm StepUp and did a deal with Google for AdWords distribution, has acquired Homestead, a website building/hosting and e-commerce services firm for small business that has been around for almost a decade.

From the press release:

Intuit Inc. today announced it has signed a definitive agreement to purchase Homestead Technologies Inc., a leader in Web site and Web store solutions for small businesses. The cash transaction is valued at approximately $170 million, including the assumption of Homestead’s outstanding options and restricted stock units.

This transaction will enable Intuit to offer Web site creation and e-commerce solutions that help small businesses acquire and serve customers through the Internet, which are increasingly important factors to entrepreneurial success and business expansion.

Intuit has millions of small business customers for its core Quicken and QuickBooks software products. Depending on how you count, the number is anywhere from 3.7 to more than 5 million. This probably makes Intuit the single largest small business sales channel in the US.

The company is now trying to expand from its core software markets into marketing and online services for those same SMBs. They’ve got the right attitude and approach “on paper.” The question is can they execute and realize the potential of these programs and opportunities? It’s not yet clear they can.

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I ran across the Kelsey blog post on the acquisition via Techmeme in which it says, “In fact, we ran considerable analysis around the acquisition of StepUp Commerce for $65 million and the Google-Intuit deals last year. . . Kelsey was the only firm pre-briefed by these companies ahead of the acquisition and partnership.”

I was also pre-briefed on the announcements. But as an individual, I suppose I don’t qualify as a firm. 🙂

6 Responses to “Intuit Acquires Homestead for $170 Million”

  1. Ahmed Farooq Says:

    It still boggles my mind how wasted Zipingo was.

  2. Greg Sterling Says:

    That’s the issue. They saw an opportunity but didn’t push hard or fast enough and then walked away.

  3. Ahmed Farooq Says:

    But that is the entire point – they gave up. There is still so much opportunity – hell, do you think Yelp has even 350,000 businesses signed up?

    Talk about a strong brand name with businesses being underutilized.

  4. Greg Sterling Says:

    Agree

  5. VentureBeat » Intuit buys Homestead, a business web services company, for $170 million Says:

    […] on how you count, as some note, Intuit has up to five million small business customers in the US, making it one of the largest […]

  6. Dave Says:

    Small aside, but I was actually a Homestead customer until 2004 (and probably for 1-2 years before that) — when I saw your post, I wondered if it was the same company, so I went back to my archives to find this post. I’m sure they improved operations since then, but at that point, they were just awful. Just trying to make sure my customer opinion lives on 🙂

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