Intuit Inc. is reportedly set to buy online personal finance provider Mint.com in a deal worth approximately $170 million.
According to several published reports, the deal is expected to be announced this week. The Mountain View, Calif.-based Intuit was not immediately available for comment.
Mint.com, also based in Mountain View, Calif., allows users to set up an account on its Web site and then add their credit card, bank, home loan and investment accounts for the online provider to manage for free. According to its Web site (www.mint.com), the company tracks more than over $175 billion in transactions and $47 billion in assets.
The potential buy could be the latest for Intuit. In June, the company announced that it would buy PayCycle Inc., an online payroll service provider to small business members and customers for $170 million. Digital Insight, an Intuit company, provides online banking services to credit unions and mid-size banks.
Aite Group Senior Analyst Ron Shevlin said the deal "is a huge wing for Mint.com." The company claims to have 1.4 million registered users, which means Intuit is paying approximately $120 per user, he explained. Because users do not pay, there is no immediate revenue for Intuit.
"This deal is a huge win for Mint.com. It represents an admission on its part that its business model wasn't sustainable over the long term," Shevlin said.
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