Microsoft Corp. to acquire Intuit Inc. for $1.5 billion

Microsoft Corp. to acquire Intuit Inc. for $1.5 billion

Microsoft Corp. MSFT has agreed to acquire Intuit Inc. INTU for about $1.5 billion in stock. The exchange rate will be 1.336 to one, and every share of INTU will get at least $71 in MSFT. INTU has repeatedly outmaneuvered the giant software firm in the money management niche, and has the inside track on being the system used for the next generation of banking services. This could generate some huge income by service charges built in to every home banking and credit card transaction. It would have taken Microsoft years to put together a strong enough competitor, and there was no guarantee it could have succeeded even if it tried its hardest. Buying INTU, though was a different matter. MSFT has the money to buy about anything it wants, and getting INTU was like getting a piece of the future. Despite MSFT’s leading position in software, it has seldom earned the top spots with superstar products. Its position is almost entirely due to being handed the software crown by IBM’s selection of its original PC operating system. All its achievements notwithstandin% history may consider IBM to have erred, and that error saddled the software world with an inferior foundation. There may be an opportunity for someone here. Could a start-up or existing software company design a winning system and beat MSFT to the prize? Possibly, but they will have to beat Scott Cook, INTU’s founder, who will now work for MSFT, to do it.

Copyright Quality Services Company Nov 7, 1994

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