Three months after it announced that it planned to shed its Intuit Public Sector Solutions arm, tax and accounting software concern Intuit Inc. agreed to divest the nonprofit unit to San Diego-based Kintera in an $11 million cash deal.
The sale of the Greenwood Village, Colo.-based division, formerly known as American Fundware, is expected to close by Jan. 31, 2005, pending shareholder and regulatory approvals.
Intuit, which acquired the unit in 2002, announced in August that it would put the division on the block in August, citing lack of sales growth as the main reason for the decision. American Fundware's unaudited revenue for the year ended July 31, 2004, was roughly $12.8 million. To help in the search for a suitor for IPSS, Intuit had engaged the San Francisco-based merchant banker Seven Hills Partners. Kintera plans to integrate FundWare into its Kintera Sphere platform, with the initial release due out during the first quarter 2005. Kintera said that it plans to continue to enhance and support FundWare 7.30 for individual installations, as well as for Kintera's software as a service application. Kintera Sphere will continue to integrate with other accounting programs.
