Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Intuit announced it will purchase Digital Insight Corp., a banking software firm, for $1.35 billion in cash. Intuit will pay $39 per share, an 18% premium, for the company which makes TurboTax and Quicken software. Digital Insight will retain its CEO Jeff Stiefler as president of the new financial institutions business unit under the aegis of Intuit, which is taking on $1 billion in debt to finance the purchase. Dilutions of earnings by 2 to 3 cents a share excluding charges is expected for 2007, but the acquisition may increase earnings for Intuit in 2008. Shares of Digital Insight closed up 16% at $38.15. Intuit shares were down $0.37 (-1.2%) to $31.52.
Related links: Media coverage: BusinessWeek.com . Commentary: Intuit Opens Its Wallet For Banking Software • Intuit: Innovation and the Bottom Line • Intuit Shares Follow Seasonal Patterns • Google-Intuit Deal Should Bring in Small Businesses. Conference call transcripts: Intuit F1Q07
Potentially impacted stocks and ETFs: Intuit (NASDAQ:INTU), Digital Insight (OTC:DGIN) • Competitors: H&R Block (NYSE:HRB), Oracle (NASDAQ:ORCL)
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