Intuit has completed the divestitures of three businesses intended to shed non-core assets, agreeing to sell the QuickBase software-development unit to private-equity firm Welsh, Carson, Anderson & Stowe for an undisclosed amount.
QuickBase, which provides tools for businesses to build and customize software, will operate as a stand-alone company with headquarters in Cambridge, Mass. General Manager Allison Mnookin will be named CEO of the newly independent QuickBase.
“We were really a hidden gem buried within Intuit, and we view this very much as our coming-out party,” she told Bloomberg. “It’s a great opportunity for the QuickBase business.”
Intuit CEO Brad Smith said its goal was to “find the right strategic fit for QuickBase, assessing potential buyers against a set of decision principles that would ensure the best outcome for employees, customers, partners and shareholders.”
“I’m pleased we have found a home for QuickBase with a company that will invest in its future and provide the product support and service customers deserve,” he said in a news release.
Intuit announced in August it was unloading three parts of its business — Quicken, QuickBase, and Demandforce — to focus on its more profitable QuickBooks small business accounting division and the TurboTax tax preparation group.
Demandforce, a provider of online marketing and communication services to small businesses, was sold to Internet Brands in January and Quicken, the iconic personal finance software brand, was sold last week to private-equity firm H.I.G. Capital.
QuickBase helps businesses to create, customize and deploy software applications. According to Mnookin, its revenue has been growing about 33% annually, with sales reaching more than $70 million through the fiscal year that closed in July.
“Intuit started the QuickBase journey believing it would be a small business-focused business,” Mnookin said. Yet “two thirds of our revenue, it turns out, comes from businesses larger than Intuit’s target — more the mid market and enterprise space.”
Michael Donovan, a Welsh Carson general partner, said that with increased focus and investment, QuickBase “can even better serve its customers and capitalize on the multi-billion dollar opportunity ahead.”