Intuit buys Homestead, a business web services company, for $170 million

November 26, 2007 | Eric Eldon | Comments |

intuitlogo.pngIntuit, a large financial software company, has purchased Homestead, a provider of web services for small businesses, for $170 million.

Homestead was founded during the previous web bubble, in 1997, providing web site hosting services for small businesses. Over the last ten years, the company has gradually expanded its services. Today, it competes against against Yahoo Small Business, Go Daddy and Network Solutions.

Read chief executive Justin Kitch’s blog post on the sale for more background.

Intuit, like Microsoft, Oracle, and other aging software companies, is expanding its web offerings to stay relevant to the growing number of businesses that rely on web-based services to manage internal processes.

Depending on how you count, as some note, Intuit has up to five million small business customers in the US, making it one of the largest small business service providers.

Intuit is also moving on other fronts. It has been launching services that help you aggregate and analyze all of your bank accounts in one place, competing against startups like Mint, Wesabe and Geezeo. See the Kelsey Group for an optimistic take on its efforts to date.

The company has a long list of VC backers, including Draper Fisher Jurvetson , Intel , Redpoint Ventures , IVP , Global Retail Partners , Meritech Capital.

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About the Author, Eric Eldon

Eric currently covers digital media technology and business news, especially what's happening on social networks and their platforms. He also writes and edits stories about venture capital, and lots of other stuff, too. He started at VentureBeat in the spring of 2007, half a year or so after Matt Marshall left his reporting job at the San Jose Mercury News to found the site. Eric previously cofounded a startup called Writewith, that was building editorial software for newspapers and other groups of writers. The startup didn't work out, but he learned a lot.

  • Most people are aware of this acquisition by now... Too bad - Homestead was a cool product and company. The recent sell-out leaves me scurrying for another solution, before idiotic Intuit takes over and ruins Homestead so it's compatible with Intuit's eccentric version of customer service and technology... About what you would expect to find from a sidewalk merchant in the middle east.

    My Guess is that anyone commenting on this blog with stuff like: GREAT! Congrats! Well Done! You Deserve IT! is most likely a current stockholder, ex-employee, disgruntled ex-employee, about to be ex-employee, Intuit employee, a buddy, or a loved one. I would venture to say that anyone who has a direct stake in the aftermath, such as current customers, devoted employees, or vendors and sub-contractors will be freaked out for sure and for good reason. HAS ANYONE evidence of "good things" for existing employees or customers resulting from an acquistion? Even current stockholders who are rejoicing will be closely watching the stock value so that they can sell it at more than it's current value is, but before it goes in the inevitable dumper after the newness wears off.

    I forgave Justin, for selling... I just wish we'd get the real-skinny - Not some watered down, or trumped up "sunshine and sugar up up your @$$" public relations, press article. I doubt ANYONE believes in Homestead's 5 priorities right now (except possibly #5 shareholder)... C'Mon - Tell it like it is! AT least you'd get out with some respect.
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