US financial software company Intuit Inc. (Nasdaq: INTU) has acquired mobile wallet company Check Inc. for $360 million. Intuit said that the acquisition will help accelerate its ability to offer bill pay across small business and personal finance products and create opportunities to retain, attract and serve additional customers.
Intuit senior VP and general manager of Intuit’s Consumer Ecosystem Group Barry Saik said, “Our commitment to solving important personal finance problems is steadfast. By joining with Check, we continue to address consumer needs and are taking the next step in the evolution of personal finance capabilities.”
Check co-founder and CEO Guy Goldstein said, "Mobile is a key driver of bill pay opportunities. We look forward to merging our talent, mobile mindset and spirit of innovation with Intuit to build products that delight consumers and become a part of their everyday financial lives.”
Check was founded in 2007 as Pageonce by Goldstein and CFO Ahikam Kaufman and changed its name last year. The company is headquartered in Palo Alto, California and has its development center in Hod Hasharon. Its business model is based on targeted ads, mainly by financial institutions. It collaborates with institutions to provide m-wallet services, which is why Intuit acquired it.
According to IVC, Check has raised $49 million to date from Pitango Venture Capital, and US funds Menlo Ventures, Hillsven Capital, and Morgenthaler Ventures. The company has 100 employees, and forecasts its revenue to grow to $20 million in 2014 from $15 million in 2013.
Check's smartphone app can be used as an electronic wallet and is used by more than 10 million people to track and pay bills. Unlike bank bill payment services, the free mobile app can be used to pay any bill anytime, anywhere and with any payment method. Giving customers a complete view into their personal finances across multiple providers, the app makes it simple to see balances, view transactions, and make payments on the fly, including same-day payments, from a mobile device. Check - Bills & Money is a free app available in Google Play and the iTunes App Store. The company says that more than 10 million people use its app.
Intuit has acquired 13 companies, mostly in fintech, for hundreds of millions of dollars.
Intuit said, "The transaction, valued at approximately $360 million for total cash and other consideration, is expected to close in the fourth fiscal quarter of 2014, subject to the expiration of applicable regulatory waiting periods and the satisfaction of other customary closing conditions."
Once the transaction closes, Check will join Intuit’s Consumer Ecosystem Group. The Israel site will continue to operate and Goldstein will serve as an Intuit VP and report to Saik.
Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2014
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