MOUNTAIN VIEW, Calif. (AP) - Software developer Intuit Inc. said Monday it will buy Homestead Technologies Inc., a privately held maker of Web site development software, in a deal it valued at $170 million.
Intuit, which makes Quicken, TurboTax and small business accounting software QuickBooks, said the deal will add Web site creation and e-commerce software to its product mix.
'This acquisition supports our growth strategy in small business by addressing an underserved need, and continues Intuit's move beyond financial management solutions into helping small businesses solve other important problems,' Brad Smith, senior vice president of Intuit's small business group, said in a statement.
Homestead will become part of the small business group following the acquisition. Justin Kitch, the company's founder and chief executive, will manage the Homestead staff.
Intuit said the purchase price includes the assumption of outstanding options and restricted stock units, although it did not say how much those items were worth.
The deal, which is subject to regulatory approval and other customary closing conditions, is expected to close in the first quarter of 2008. Intuit expects the deal will slightly lower earnings in fiscal 2008 and 2009.
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