Intuit sells off its financial services unit for $1B

Intuit is selling off its financial services unit, which provides online and mobile software to banks, to Thoma Bravo for $1.03 billion in cash.

Private equity firm Thoma Bravo will gain digital payments and rewards system, as well as an Internet and mobile banking system.

The move will help Mountain View, Calif-based Intuit focus on reaching small businesses and individuals with its tax-preparation and financial management software. CEO Brad Smith is fond of saying that 20 percent of the country’s GDP flows through Quickbooks, Intuit’s flagship accounting toolset.

The business unit being sold is one of Intuit’s smallest; it represents just nine percent of the company’s total net revenue in 2012. It currently has about 730 employees, the New York Times estimates.

The news was announced in a statement Monday. The terms of the deal dictate that Intuit will hold onto the jewel in its personal finance crown, Mint.com, and its Open Financial Exchange connectivity unit.

Intuit has been around for 30 years, but wants to be associated with cutting-edge technology. It describes itself as a “startup,” and like Google, it offers employees a percentage of time to focus on innovation. For more on this topic, check out our recent Q&A with Intuit founder Scott Cook here.

Intuit plans to use the proceeds from the deal to buy back stock.