Business and financial management solutions provider, Intuit Inc. (INTU - Free Report) recently announced the acquisition of the Web banking technology assets of Mobile Money Ventures, a mobile financial solutions provider, for an undisclosed amount.
This acquisition is expected to position Intuit as the largest online and mobile technology provider to financial institutions and will enable the company to directly manage customer support and gain full control over the design of its mobile Web banking solutions. The acquisition will further facilitate innovative solutions for financial institution customers.
Moreover, Intuit is expected to gain access to Mobile Money’s customers. The company’s customer base includes 320 U.S. banks and credit unions. Intuit provides text message and downloadable applications for financial institution customers to carry out their critical banking tasks from anywhere through mobile phones. Therefore, this business should benefit from the acquisition.
In 2008, San Mateo-based Mobile Money Ventures was launched as a joint venture between Citigroup (C) and SK Telecom Americas.
Intuit is also expected to gain a small team of employees with significant mobile expertise and a strong track record of deploying mobile banking solutions to financial institutions. This team is expected to help existing as well as new customers on the mobile web banking platform.
Apart from acquisitions, Intuit is currently undertaking other initiatives for driving growth. The company recently teamed up with Salesforce.com Inc (CRM). The alliance will likely be beneficial for both the companies, whereby they will offer customer relationship management and financial management solutions on a single platform.
Under the terms of the alliance, Salesforce.com will integrate Intuit’s QuickBooks Online accounting applications into its CRM Software-as-a-Service offering. Intuit will subsequently resell the integrated product via its online App Center. The offering will enable small businesses to view their financial data and customer account information through a single application.
A recent survey conducted by Intuit revealed that most of the small businesses conduct CRM tasks manually or with inadequate software support. Intuit believes that the joint solution will better address this need, thereby simplifying the job of small business owners. Salesforce.com's capabilities will help companies track customers, follow leads and close deals faster.
Moreover, Intuit also appears to be gaining market share based on brand recognition and a secular shift toward “do-it-yourself” tax preparation.
Management is confident about gaining market share in its Small Business group and Consumer Tax business, aided by accelerating customer growth and improving revenue per customer. However, stiff competition from H&R Block Inc. (HRB - Free Report) is a concern.
Currently, Intuit has a Zacks #3 Rank, implying a short-term Hold rating,