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Technology / AI and automation

INTUIT BUYS PAYROLL SERVICES FIRM CRI FOR $200M

Financial software provider Intuit Inc has struck a deal to acquire payroll services company Computing Resources Inc for $200m in cash and stock. The purchase of Reno, Nevada-based CRI gives Intuit an immediate boost in its offerings to small businesses and comes in line with its stated goal of being an essential resource for that market, the company said. Under the terms of the deal, Intuit will acquire the privately-held CRI for approximately $175m in cash and $25m in Intuit stock. The acquisition gives Intuit not only an established set of low-cost payroll services, but a customer base to which it can market its other software and services. The two companies had been partners already and the acquisition is being described as the next logical step in the working relationship. Since October, Intuit has been offering payroll services – including payroll tax filing, tax deposit services and direct deposit – through CRI to its QuickBooks small business customers. Intuit claims to have processed $60m in gross payrolls for small businesses in its most recent quarter. The acquisition, which has been approved by the boards of both companies and the shareholders of CRI, is expected to close in the second calendar quarter of 1999. CRI will operate as a wholly-owned subsidiary of Intuit, reporting through Jim Heeger, senior vice president of Intuit’s small business division. Ranson Webster will continue as CEO of the subsidiary.

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CBR Staff Writer

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