(RTTNews) - Business and financial management solutions provider Intuit Inc. (INTU) said it agreed to acquire privately held Medfusion, which provides patient-to-provider communication solutions, in a cash transaction valued at about $91 million. The transaction is expected to close during the fourth quarter of Intuit's fiscal year 2010, subject to customary closing conditions.
The acquisition will accelerate Intuit's healthcare strategy by combining the its track record in creating innovative, easy-to-use consumer and small business solutions with Medfusion's patient-to-provider communication solutions.
Medfusion's online solution helps patients communicate with their providers to schedule appointments, pay bills, request prescription refills, complete medical forms, review lab results and clinical summaries, receive reminders and exchange secure messages for related care and administrative issues.
After completion of the transaction, Mountain View, California-based Intuit will build upon its existing Quicken Health solutions to 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.
Medfusion's founder and chief executive officer, Stephen Malik, will become a senior vice president and general manager reporting to Brad Smith, Intuit president and chief executive officer.
Malik will continue to run Medfusion and will lead Intuit's healthcare business from Medfusion's headquarters in North Carolina.
The acquisition is expected to reduce Intuit's fiscal year 2010 GAAP and non-GAAP earnings per share by about $0.01. Intuit does not expect the acquisition to have a material effect on fiscal year 2011 earnings.
Intuit closed Monday's regular trading at $35.71, up $1.70 or 5.00% on a volume of 3.54 million shares. In after-hours, the share lost 47 cents or 1.32%.
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updated May 10, 2010
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