July 1, 2013 / 1:43 PM / 5 years ago

Intuit to sell financial services unit for $1 billion

(Reuters) - Intuit Inc (INTU.O) said it would sell its financial services unit to private equity firm Thoma Bravo for $1.03 billion as it focuses on its core tax-preparation software business.

Intuit, the maker of tax-preparation software TurboTax, is concentrating on its core business after an unusually weak tax filing season hurt its profits for the first half of the year.

The company’s shares, which have fallen 7 percent in the past quarter, were up 2.6 percent in early trading.

Intuit said in a statement it would use the proceeds from the deal to repurchase shares.

Intuit Financial Services (IFS), which provides online and banking software to financial institutions, is expected to record revenue of about $325 million in fiscal 2013, Intuit said in the statement.

Some IFS assets, including OFX connectivity and Mint.com, are not part of the deal and will remain as part of Intuit.

Intuit also said it was planning to sell its health group and had realigned its accountancy business as part of its reorganization.

Reporting by Aman Shah in Bangalore; Editing by Saumyadeb Chakrabarty

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