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Chronicles

The story behind the story

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Intuit sells its Quicken business to private equity firm H.I.G. Capital

Larry Dignan / ZDNet :

ZDNet Larry Dignan

Context & Ripple Effects

This sale closes out a cleanup Intuit flagged last summer, when it announced plans to divest Demandforce, QuickBase, and Quicken alongside mixed Q4 results. Demandforce went first, sold to Internet Brands in January, leaving Quicken as the second of the three units to find a buyer.

The buyer profile matters: H.I.G. Capital is a private equity firm, not a strategic software acquirer, which signals these are cash-flow businesses Intuit no longer sees as core rather than products with a growth story. Meanwhile Intuit has been building out its remaining cloud bets, including the Playbook HR acquisition for QuickBooks Online Self-Employed.

First-order effects

  • Quicken's customers and staff transfer to H.I.G. Capital ownership, ending Intuit's run of the decades-old personal-finance desktop product.
  • Intuit has now executed two of the three divestitures it announced in August 2015, with only QuickBase still pending a buyer.

Second-order effects

  • The QuickBase sale appears next in line — separate reporting days later says the software-development unit goes to another New York private equity firm, with GM Allison Mnookin becoming CEO of the spun-out company.
  • Rivals in personal finance gain a competitor whose product roadmap is now set by a financial buyer optimizing for returns rather than by a platform company cross-selling TurboTax and QuickBooks.

Third-order effects

  • The pattern — a cloud-era incumbent shedding desktop-era products to private equity while concentrating on subscription ecosystems — points toward a market where legacy packaged software lives on under PE ownership, detached from the strategic roadmaps of its former parents.

The trend: Large software companies are systematically divesting legacy desktop franchises to private equity to fund cloud and AI-focused portfolios.