Intuit to acquire Medfusion for $91 million

Chris Caceres · May 10, 2010 · Short URL: https://vator.tv/n/f8e

Intuit looking integrate Medfusion's technology into Quicken Health solutions

Intuit's up to more acquisitions, this time in the online health sector.   On Monday, the software company announced it's signed a definitive agreement to acquire Medfusion for $91 million. 

Medfusion has been around since 1996 providing Web development for healthcare clients like hospitals and insurance companies.  Jump to today, the company has built a SaaS platform for the health industry which provides tools for scheduling appointments, paying bills, requesting prescription refills, medical forms, reviewing of lab results, reminders and a secure messaging system for administrative purposes.  

Intuit has its own digital health solutions called Quicken Health.  It plans to use Medfusion's technologies to improve on its own.  Intuit said it would, "make it easier for patients to understand their medical bills and for providers to get paid faster.  The companies plan to combine Intuit’s user interface and design expertise with Medfusion’s broader portal offering and bill presentment and payment solutions."  

Intuit's most well-known acquisition these days came in September of 2009, when it acquired Mint.com for a massive $170 million.  Intuit said it would use Mint to build upon its financial software Quicken and TurboTax.  

The two companies disclosed that Medfusion has already been using Intuit's products for some of its services.  For its online bill payment feature, Medfusion uses Intuits Payment Solutions SDK.  

Brad Smith, CEO of Intuit commented in a prepared statement, "This transaction expands our software-as-a-service offerings with a solution currently used by more than 30,000 healthcare providers, the vast majority of whom are essentially small businesses."

The transaction isn't complete yet.  It's expected to close during the fourth quarter of Intuits fiscal year 2010, which ends July 31.  Intuit said the acquisition is expected to reduce its fiscal year 2010 GAAP and non-GAAP diluted earning per share by approximately 1 cent, and doesn't expect the acquisition to have a material effect on its fiscal year 2011 earning.

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