Microsoft Acquires Intuit for $1.5 Billion

Microsoft Corp. has announced its purchase of Intuit Inc., the maker of the popular Quicken personal finance software, for $1.5 billion in stock. This acquisition marks the largest ever for Microsoft, the world's largest software maker, and one of the largest software company takeovers on record. As part of the deal, Microsoft will issue approximately 27 million shares, giving Intuit shareholders a premium of at least 40% over the stock's current price. Intuit's Quicken dominates the market for personal finance software, outselling Microsoft's Money 15-to-1.

Key Takeaways:

• Microsoft will acquire Intuit for $1.5 billion in stock, marking the largest acquisition in its history.
• The deal will see Microsoft issue approximately 27 million shares, giving Intuit shareholders a premium of at least 40% over the stock's current price.
• Intuit's Quicken dominates the market for personal finance software, outselling Microsoft's Money 15-to-1.
• The acquisition will bolster Microsoft's growing consumer products division and fill a major gap in its line of programs.
• Microsoft has identified consumer software as a critical area of growth, and this acquisition is seen as an attempt to expand its presence in this market.
• Intuit reported $223 million in revenue in its latest fiscal year, roughly double the size of Microsoft's consumer product division.
• Microsoft chairman William Gates said that the acquisition will accelerate the development of technologies to help people make financial transactions.
• Intuit chairman Scott Cook stated that the company will more quickly advance toward its goal of improving people's financial lives and helping financial institutions use the information highway.

Statistics:

• $1.5 billion: The value of the acquisition
• 27 million: The number of shares Microsoft will issue in the deal
• 40%: The premium over the current stock price that Intuit shareholders will receive
• 15-to-1: The ratio of Intuit's Quicken sales to Microsoft's Money sales
• $223 million: Intuit's revenue in its latest fiscal year
• 581 million: The total number of shares of common stock Microsoft has outstanding
• 5%: The percentage of outstanding shares that Microsoft expects to issue

Sources:

• Reuters News Agency
• Microsoft Corp.
• Intuit Inc.
• Nasdaq Stock Market ( closing prices for Microsoft and Intuit on Nasdaq trading)