Intuit Inc. has signed a definitive agreement to acquire Medfusion Inc., a Cary, N.C.-based patient-to-provider communications software developer, for approximately $91 million.
With the purchase on Tuesday, the companies look to resolve health care provider and consumer concerns, such as enabling more effective and efficient patient interactions online, accessing and managing their personal health information, and creating more efficient ways for patients to settle and track their health care expenses.
This transaction expands our Software-as-a-Service offerings with a solution currently used by more than 30,000 health care providers, the vast majority of whom are essentially small businesses, said Intuit president and chief executive officer Brad Smith. The combination of Medfusions industry-leading patient-provider communication solutions and Intuits expertise in creating innovative solutions that improve the financial lives of small businesses and consumers will help us create new solutions that make the clinical, administrative and financial side of healthcare easier for everyone.
Medfusion already uses Intuit products to provide some of its services. It offers an online bill payment solution to its customers using the Intuit Payment Solutions divisions software development kit.
The acquisition of Medfusion accelerates Intuits health care momentum to offer solutions at the intersection of peoples health care and finances, and adds clinical and administrative solutions as well, said Rick Altinger, director of provider solutions for Quicken Health at Intuit. It reinforces our belief that solving consumer and provider problems holds great promise as a long-term growth engine for Intuit.
After the acquisition is completed, Medfusion founder and CEO Stephen Malik will become a senior vice president and general manager at Intuit, reporting to Smith. Malik will continue to run Medfusion and will lead Intuits health care business from Medfusions headquarters in North Carolina, an area considered a hub of health care technology innovation and talent.
Our mission is to enable health care providers to better serve their patients through enhanced communications, said Malik. As part of Intuit, well be able to build upon the innovation, stability, and trusted brand of a company that has a distinguished history delighting customers.
The transaction is expected to close during the fourth quarter of Intuits fiscal year 2010, which ends July 31, and is subject to the customary closing conditions.
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