Mountain View, Calif. (Aug. 2, 2002) -- Intuit said Thursday that it had completed the sale of its Quicken Loans mortgage business -- a step it took as part of an effort to re-focus the tax and small business markets.The business was purchase by Dan Gilbert, chairman and founder of Quicken Loans(R) and Rock Financial, and a group of local investors. Intuit estimates that it will book a pre-tax gain of approximately $25 million to $30 million on the sale. That includes a $23.3 million note and a 12.5 percent stake in the new company in exchange for all of the outstanding stock of Intuit's Quicken Loans Inc. and Title Source Inc. subsidiaries.
"Quicken Loans is a great business and produced strong results for Intuit over the last two fiscal years," said Steve Bennett, Intuit's president and chief executive officer. "With Intuit's business strategy focused more on the growing tax and small business markets, Quicken Loans was no longer a good strategic fit."
As part of the deal, Quicken Loans will continue to be the exclusive mortgage content provider for Yahoo! Real Estate, Homestore.com, Realtor.com, CitySearch.com, and Intuit will continue to offer Quicken Loans products and services on Quicken.com and through Quicken and TurboTax software. Intuit also agreed not to enter into new marketing deals with other mortgage lenders.
--Electronic Accountant Newswire staff
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