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Intuit, Inc. has signed a definitive agreement to acquire privately held Prestwick Services, a subsidiary of Prestwick Holdings a Sudbury, Mass., - based leader in payroll-based billing and payment solutions for the workers' compensation industry.
Traditional workers' compensation plans involve large pre-payments based on estimates, with the potential for substantial extra payments at year-end audits. With the acquisition of Prestwick Services and its TRUPAY™ technology, Intuit will open the platform that enables workers' compensation insurance premiums to be calculated in real-time, based on actual payroll, and will not require small business owners to switch insurance carriers or agents.
For a small business owner, pay-as-you-go workers' compensation has several benefits, including:
• Stronger Accuracy Premiums are calculated every pay period instead of estimated at the beginning of the year, so payments are adjusted as employee changes occur, virtually eliminating surprise payments at year-end audits.
• Available Cash flow No more hefty lump sum pre-payments means more flexibility in cash flow and paying only for changes as needed.
• Convenience Automatic collection of premiums means no extra legwork, fewer late payments and one less thing on the to-do list.
"This transaction furthers our commitment to helping small businesses manage every aspect of their business, so they can be free to focus on doing what they really love," said Ginny Lee, senior vice president and general manager of Intuit's Employee Management Solutions division. "We are very pleased to be adding a team that brings deep insurance industry experience as well as their robust TRUPAY technology platform. Together, we look forward to providing more benefits to our small businesses customers as we work to bring even more insurance carrier partners onto the platform."
The integration of Prestwick Services means more than 1 million Intuit payroll customers will have access to flexible payment options from 15 top insurance carriers, without requiring a change to their existing agent-client relationships.
When the transaction closes, Prestwick Services will become part of Intuit's Employee Management Solutions division.
"Our drive has always been to make running a business simpler. Intuit's expertise in doing just that, coupled with our TRUPAY technology, will enable workers' compensation insurance carriers to better serve their small business clients with flexible payment options while retaining the benefits of existing client-agent relationships," said Adam Black, founder of Prestwick. "As part of Intuit, we'll be able to benefit millions of payroll customers by putting our technology into the hands of a trusted brand that has a long history of innovation and delighting customers."
The transaction is expected to close during the second quarter of Intuit's fiscal year 2014, which ends Jan. 31, and is subject to customary closing conditions.
About Intuit, Inc.
Intuit Inc. (intuit.com) creates business and financial management solutions that simplify the business of life for small businesses, consumers and accounting professionals.
Its flagship products and services include QuickBooks®, Quicken® and TurboTax®, which make it easier to manage small businesses and payroll processing, personal finance, and tax preparation and filing. Mint.com provides a fresh, easy and intelligent way for people to manage their money, while Demandforce® offers marketing and communication tools for small businesses. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants.
Founded in 1983, Intuit had revenue of $4.2 billion in its fiscal year 2013. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India and other locations.
Cautions About Forward-looking Statements
This press release contains forward-looking statements, including expectations regarding growth from future products and services and the impact of the acquisition of Prestwick Services on Intuit's EMS business.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, without limitation, the following: inherent difficulty in predicting consumer behavior; consumers may not respond as we expect to our advertising and promotional activities; product introductions and price competition from our competitors can have unpredictable negative effects on our revenue, profitability and market position; we may not be able to successfully innovate and introduce new offerings and business models to meet our growth and profitability objectives, and current and future offerings may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; and any failure to properly use and protect personal customer information and data could harm our revenue, earnings and reputation. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2013 and in our other SEC filings. You can locate these reports through our website at investors.intuit.com. Forward-looking statements are based on information as of November 21, 2013, and we do not undertake any duty to update any forward-looking statement or other information in these materials.
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