Intuit To Acquire Bill Payment Service Firm For $360 Mln - Update

(RTTNews) - Accounting software maker Intuit Inc (INTU), Tuesday agreed to acquire Check, a mobile bill-payment service provider, for $360 million. The deal is expected to close in the fourth quarter of 2014.

Intuit expects the deal to accelerate its ability to offer bill payment across small business and personal finance products, and create opportunities to serve additional customers.

Check, based in Palo Alto, California, makes money from advertisers that offer promotions for credit cards or insurance within the app. Its mobile app automates and consolidates the bill pay process, reducing the complexity for consumers.

For Intuit, the deal will help it gain a critical consumer payments capability that will allow it streamline interactions between consumer and small business customers.

Check's smartphone app is used by more than 10 million people. Upon completion, Check, which has its development center in Israel, will join Intuit's Consumer Ecosystem Group.

Mountain View, California-based Intuit's acquisition is part of deals made since last year as it expands its suite of tools for individuals and small businesses. In November, Intuit agreed to buy Prestwick Services, a workers' compensation payment solutions provider.

Intuit, which makes QuickBooks and TurboTax software, last week reported a better-than-expected third-quarter profit on a strong tax season that lifted demand for its products. But its shares tanked after lowering its guidance for the fourth quarter.

Intuit stock is trading at $80.15, up $0.56 or 0.70%, on a volume of 543k shares on the Nasdaq.