Intuit Acquires PayCycle

By Subraya Mallya - June 2009 | Topics - SaaS

Mountain View, California based Intuit, the leader in SMB solutions, announced that it is acquiring Palo Alto based payroll service provider PayCycle for $170 million in cash thereby expanding its presence in payroll services. Intuit already owns Intuit Online Payroll and QuickBooks Payroll.

PayCycle, founded by two ex-Intuit and headed by ex-Intuit Chief Financial Officer Jim Heeger was targeting smaller businesses and winning deals away from Intuit. It serves more than 85,000 customers and was generating revenue in the range of $25 million.

Intuit has always modeled it businesses with a complementary services business. This makes the deal a perfect fit with the Intuit model. With this deal, Intuit makes an entry into Software-as-a-Service (SaaS). Intuit is a well known trusted brand in small and medium business spectrum. This should give PayCycle solution the necessary credibility and muscle to go on and do greater things.

Intuit is known for letting individual business under it operate like autonomous subsidiaries. This should bode well for PayCycle to grow faster with the financial and sales muscle of Intuit behind it.

Tags |
Back to Top
%d bloggers like this: