MOUNTAIN VIEW, Calif. – May 10, 2010 – Intuit Inc. (Nasdaq: INTU) has signed a definitive agreement to acquire privately held Medfusion, a Cary, N.C.-based patient-to-provider communications company. Medfusion offers enhanced online solutions that enable healthcare providers to offer superior service to their patients while improving office efficiency and generating revenue. The cash transaction is valued at approximately $91 million.
The acquisition will accelerate Intuit’s healthcare strategy by combining the company’s consumer and small business solutions with Medfusion’s patient-to-provider communication solutions.
Medfusion’s online solution is designed to help patients communicate with their providers to schedule appointments, pay bills, request prescription refills, complete medical forms, review lab results and clinical summaries, receive reminders and exchange secure messages for related care and administrative issues. After the transaction closes, Intuit will build upon its existing Quicken Health solutions to make it easier for patients to understand their medical bills and for providers to get paid faster. The companies plan to combine Intuit’s user interface and design expertise with Medfusion’s broader portal offering and bill presentment and payment solutions.
When the transaction closes, Stephen Malik, Medfusion’s founder and chief executive officer, will become a senior vice president and general manager reporting to Smith. Malik will continue to run Medfusion and will lead Intuit’s healthcare business from Medfusion’s headquarters in
Medfusion already uses Intuit solutions to provide some of its services. It offers an online bill payment solution to its customers using the Intuit Payment Solutions division’s software development kit. In addition, Medfusion solutions can be offered to approximately 75,000 Intuit QuickBooks medical practices and thousands of healthcare practices that already use Intuit Websites.
The transaction is expected to close during the fourth quarter of Intuit’s fiscal year 2010, which ends July 31, and is subject to customary closing conditions. The acquisition is expected to reduce Intuit’s fiscal year 2010 GAAP and non-GAAP diluted earnings per share by approximately 1 cent. Intuit does not expect the acquisition to have a material effect on fiscal year 2011 earnings.
