Intuit Inc. announced it has signed a definitive agreement to purchase Homestead Technologies Inc. which about 10 years ago created Homestead.com. The cash transaction is valued at approximately $170 million, including the assumption of Homestead’s outstanding options and restricted stock units. Approximately 12 million people have used Homestead’s service. Homestead, together with Geocities (acquired by Yahoo) and Tripod (bought by Lycos) was one of the early providers of tools to help individuals and companies easily get online. Apparently 19 times is a charm since according to Homestead CEO Justin Kitch’s blog, this was the 19th acquisition offer they have received over the years.
This transaction will enable Intuit to offer Web site creation and e-commerce solutions which will help small businesses serve and acquire customers through the Internet, which are increasingly important factors for success and expansion. The acquisition is part of Intuit’s effort to diversify beyond its popular Quicken and TurboTax programs.
The transaction is expected to close during the first calendar quarter of 2008.