When we started Demandforce in 2003, our mission was to help small businesses thrive in a connected economy.  Today we connect more than 35,000 business users to more than 30 million consumers across 15 distinct industry segments, generating over $1 billion dollars in incremental revenue to our customers–and we’re just getting started.

That’s $1 Billion used to hire staff, buy equipment, beautify offices, or drop to the bottom line.  We’re proud of this contribution to small business growth, and we feel we have an obligation to keep expanding so more businesses can experience the benefits of Demandforce.

That’s why today, I am exceptionally excited to announce that Demandforce has agreed to be acquired by Intuit, Inc.  As part of the Intuit family, we have the backing of company with over 8,000 employees, over $4 billion in revenue, and unparalleled experience in delivering value to small businesses.  Intuit is also the world’s most admired software company according to Forbes.  We think that’s pretty amazing.

Demandforce will continue to be run by the same management team that built the company, and we are committed to pursuing our mission, preserving our
culture of innovation, and delivering overwhelming value to our customers each and every day.

We thank the customers, partners and friends who have supported Demandforce along the way, and pledge to keep working tirelessly to grow small businesses for the benefit of all of us.  The future is bright, and we couldn’t be more excited to embark on the next phase of our journey together.

Rick Berry
President
Demandforce, Inc.

Full Press Release Below

Intuit Inc. today announced it has entered into a definitive agreement to purchase Demandforce, a San Francisco-based company that helps small- and medium-sized businesses (SMBs) thrive in the connected economy. Demandforce’s software as a service, or SaaS, application is used by thousands of small businesses to automate marketing and customer communications, build and maintain a strong online reputation and raise their profile with local consumers.

Consistent with Intuit’s connected services strategy, Demandforce accelerates Intuit’s expansion into high-value SaaS products for SMBs. Demandforce’s email, mobile and social tools, such as online reviews, help SMBs better communicate with their customers and drive higher retention and growth in their businesses. The company has achieved strong traction in industries like dental, automotive, spas and salons, optometry and chiropractors, with considerable opportunity for growth.

“Demandforce sits at the sweet spot of Intuit’s SMB customer base and is consistent with our goal to help our customers save time and make money,” said Kiran Patel, executive vice president and general manager, Intuit Small Business Group. “With a compelling customer value proposition, SaaS model and high growth profile, Demandforce will provide opportunities to grow Intuit’s customer base and revenue per customer over time.”

Once the transaction closes, Demandforce will become a new division in Intuit’s Small Business Group and will continue to be led by Rick Berry, Demandforce president and founder, reporting to Patel.

“We believe this transaction greatly benefits Intuit and Demandforce’s customers, partners, employees and shareholders,” said Berry. “Intuit is one of the most respected companies and brands serving SMBs and represents a great opportunity to continue our rapid growth and expansion into new markets.”

Terms

The cash transaction, valued at approximately $423.5 million, is expected to close in May 2012, subject to the expiration of applicable regulatory waiting periods and the satisfaction of other customary closing conditions. The transaction is expected to add one to two points to Intuit’s revenue growth in fiscal year 2013 and to be neutral to modestly dilutive for earnings per share in fiscal years 2012 and 2013.

About Intuit Inc.

Intuit Inc. is a leading provider of business and financial management solutions for small and medium-sized businesses; consumers, accounting professionals and financial institutions. Its flagship products and services, including QuickBooks(R), TurboTax(R) and Quicken(R), simplify small business management including payment and payroll processing, tax preparation and filing, and personal finance. Lacerte(R) and ProSeries(R) are Intuit’s leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $3.9 billion in its fiscal year 2011. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com .

Intuit and the Intuit logo, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.