KKR & Co. LP (NYSE: KKR) portfolio company Internet Brands, agreed to acquire Demandforce, a marketing automation software service provider, from Intuit (NASDAQ: INTU). The acquisition will bolster Internet Brands’ rapidly growing presence in the SMB software services space, particularly in the Health category.
Based in San Francisco, Demandforce helps SMB and enterprise clients in targeted categories grow their businesses with award-winning marketing products. The company’s communication, reputation, and networking tools form a powerful web-based application that seamlessly integrates with client workflow systems. Demandforce was founded in 2003 and acquired by Intuit in 2012.
“Demandforce’s success in health-related categories including medical and dental practices aligns strategically with Internet Brands’ intense focus on the same target markets,” said Bob Brisco, CEO of Internet Brands. “We look forward to integrating Demandforce’s powerful platform and talented workforce with the Internet Brands portfolio to provide an enhanced experience for our customers.”
Demandforce will operate within Internet Brands’ market-leading Health portfolio. Following the acquisition, Internet Brands will serve more than 50,000 clients with the Internet’s largest collection of software solution providers for health professionals. These include Sesame Communications, Officite, eDoctors, TherapySites, iMatrix, and Baystone Media.
“With Internet Brands’ deep vertical expertise, they clearly recognize the value of Demandforce and the opportunity in front of them and are committed to making the business successful for customers,” said Cameron Alder, general manager of Demandforce. “As we’ve said, selling the business frees Demandforce to reach its full potential.”
The Demandforce brand and product offerings will be retained following the acquisition, and Demandforce will continue to operate from its San Francisco headquarters. The transaction is expected to close in Feb. 2016.
Internet Brands is a fully integrated online media and software services organization focused on four high-value vertical categories: automotive, health, legal, home, and travel. The company’s award-winning consumer websites lead their categories and serve more than 100 million monthly visitors, while a full range of web presence offerings has established deep, long-term relationships with SMB and enterprise clients. Internet Brands’ powerful, proprietary operating platform provides the flexibility and scalability to fuel the company’s continued growth. The company was founded in 1998 as CarsDirect.com, and was launched from the business incubator Idealab. CarsDirect changed its name to Internet Brands in 2005, and became publicly traded on NASDAQ in 2007. In 2010 it was acquired by private equity firm Hellman & Friedman for $640 million. In June 2014, Internet Brands was acquired from Hellman & Friedman by KKR (formerly known as Kohlberg Kravis Roberts & Co.) for $1.1 billion. The company is headquartered in El Segundo, California.
Intuit Inc. creates business and financial management solutions that simplify the business of life for small businesses, consumers and accounting professionals. Its flagship products and services include QuickBooks, Quicken and TurboTax, which make it easier to manage small businesses and payroll processing, personal finance, and tax preparation and filing. Mint.com provides a fresh, easy and intelligent way for people to manage their money, while Demandforce offers marketing and communication tools for small businesses. ProSeries and Lacerte are Intuit’s leading tax preparation offerings for professional accountants. Founded in 1983. The company has $4.29 billion ion revenue and a market capitalization of $24.14 billion. It has 7,700 employees and major offices in the United States, Canada, the United Kingdom, India and other locations. The company is headquartered in Mountain View, California.
Demandforce is an online marketing automation and communication software service that helps local businesses thrive in the Internet economy. Demandforce’s award-winning products help build businesses a strong online reputation and leverage local network marketing. Demandforce was acquired by Intuit in 2012.