Intuit to Acquire Workers’ Compensation Payment Solutions Provider Prestwick Services
Transaction Extends Intuit’s Open Platform Offerings Available to Small Businesses and Frees Cash Flow for Employers
MOUNTAIN VIEW, Calif. – Intuit Inc. (Nasdaq: INTU) 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. 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. More information can be found at www.intuit.com.
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