Intuit expands merchant services business through acquisition

Intuit announced today that it is acquiring Innovative Merchant Solutions, a Calabasas, Calif.-based provider of credit and debit card processing services for small businesses.

“The acquisition of IMS enables Intuit to strengthen our offering for a critical ‘beyond-accounting’ service – merchant account services,” said Steve Bennett, Intuit’s president and chief executive officer. “Intuit has had a great track record with our existing merchant account service. Starting from zero three years ago, we’ve attracted 40,000 customers and created a $9 million business with a limited offering. IMS enables us to expand from that base by providing merchants with an enhanced offering, including a broader range of payment options such as PIN debit card processing and swipe terminals. In addition, we’ll be able to provide an easy-to-use offering that tightly integrates with QuickBooks and is backed by service levels that exceed those in the industry today.”

Intuit said it is paying $116 MM to acquire the company which had net revenues in 2002 of $25 MM.

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