Mon, Dec 22, 2014, 10:07 PM EST - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

Intuit, Inc. (INTU) Message Board

  • boratnumber1 boratnumber1 May 17, 2012 6:45 PM Flag

    Bottomline acquisition

    Can anyone confirm the consideration that Bottomline paid for the commercial banking asset they purchased? I read somewhere that it was $20m, but cannot believe that would be correct based on the revenue they are getting. Intuit decreased their guidance for Financial Services segment revenue by $12m with $4m of that coming in Q3. That means $8m of lower revenue in Q4. I am assuming that is a good run rate and the $4m is due to a mid-quarter purchase in Q3. That would imply a $32m annualized business and a $20m purchase price results in an implied revenue multiple of .625x.

    Intuit acquired Digital Insight, which is the current Financial Services segment, for $1.3b in 2007. I cannot find the exact revenue that Digital Insight had at that time, but it appears to be around $250m. That equates to a revenue multiple of 5.2x. That price seems way too expensive, especially considering the revenue growth since the acquisition. How can they sell a piece of business they acquired for 5x revenue at 1/10th the multiple?

    I think Intuit has a good business model, but they need to find better uses for their cash than overpriced acquisitions.

94.69+0.77(+0.82%)Dec 22 4:00 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Gilead Sciences Inc.
NASDAQMon, Dec 22, 2014 4:00 PM EST
Henry Schein, Inc.
NASDAQMon, Dec 22, 2014 4:00 PM EST
Rite Aid Corporation
NYSEMon, Dec 22, 2014 4:01 PM EST