2007

Intuit & ECHO 12/19 Businesswire Intuit & Electronic Clearing House (ECHO) have agreed for Intuit to acquire ECHO. Intuit will pay $17 per share in cash in exchange for each share of ECHO common stock, including shares issuable upon exercise of options. The purchase price is $131m. ECHO is a provider of electronic payment processing solutions, including check, debit card & credit card processing, & check verification, collection, guarantee services & ACH. Intuit had previously signed a definitive agreement to acquire ECHO in 12/06, but the parties terminated the arrangement in March. ECHO has refocused its business & addressed governmental concerns while generating revenue growth. With ECHO’s business changes & solid performance, the companies agree that conditions are favorable for a successful acquisition. ‘ECHO is a great fit for Intuit,’ said Brad Smith, Intuit. ‘We expect ECHO’s technology & operational assets will help accelerate Intuit’s growth & strengthen our small business ecosystem that includes payments.’ With ECHO’s ACH capabilities, Intuit will be able to round out its payment offering with check services. The company will be able to offer solutions to merchants that address the most commonly used payment methods, including credit card, debit card, ACH, gift card, check verification, collection, guarantee & conversion. The offerings will save merchants time & money & will continue to differentiate Intuit’s solutions from other electronic payment providers. The acquisition of ECHO will expand Intuit’s sales & distribution channels & provide relationships with thousands of customers, including larger enterprise customers. ‘ECHO has strengthened its focus on delivering ACH & card technology that includes payment processing services, a technology platform, & established relationships with customers & partners,’ said Chuck Harris, ECHO. ‘ECHO’s technology solution & team of payment industry professionals, coupled with Intuit’s focus on easy to use solutions, will help the combined company to deliver new & innovative products to customers.’ It is expected to close in IQ 2008, at which time ECHO will become a subsidiary of Intuit, & ECHO’s stock will cease trading. Intuit expects the acquisition to be dilutive in FY2008 & 2009.