Financial software maker Intuit Inc. said Thursday it agreed to acquire banking software company Digital Insight Corp. in a cash deal valued at about $1.35 billion.
Under the terms of the agreement, Intuit, the maker of TurboTax and Quicken software, will pay $39 per share for Digital Insight, a Calabasas, Calif., provider of online banking software used by financial services institutions. The price marks an 18 percent premium to Wednesday's close of $33 for Digital Insight shares.
Digital Insight CEO Jeff Stiefler will serve as president to a newly formed financial institutions business unit within Intuit.
Intuit plans to finance the transaction through cash and up to $1 billion in debt.
For 2007, the acquisition is expected to dilute earnings by 2 cents to 3 cents per share, excluding charges. By 2008, the acquisition is expected to grow earnings, excluding charges.
Shares of Digital Insight were trading at $34.49 in the premarket session, up $1.49, or 4.5 percent, from Wednesday's close.
Intuit shares were trading at $32.39, up 50 cents from Wednesday's closing price of $31.89 on the Nasdaq.