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Investment Banking and
Strategic Business Development
Intuit Inc. Purchase of Rock Financial Corporation
Acquisition Summary
|
Target Information |
| Target: |
Rock Financial
Corporation |
| City: |
Bingham Farms |
State: MI |
| Type of Company: |
Internet
Mortgage Firm |
| Financial Data As Of: |
6/30/99 |
Assets: $137.3 |
Net Income (LTM): $13.0 |
| Target’s Business: |
Rock Financial
offers conventional, Fannie Mae, Freddie Mac, sub-prime, and other home
and personal loans through its rockloan.com Web site, as well as its
three loan centers. Rock also provides mortgages to customers of
Michigan National Bank through a joint venture. The Company does not
securitize its loans but sells them in bulk or as whole loans. Rock has
consolidated most of its loan centers under the Rock Financial name and
is concentrating on its Internet-based business. Chairman and CEO Daniel
Gilbert and his brother Gary own 65% of the company. |
|
Acquirer Information |
| Acquirer Name: |
Intuit Inc. |
| City: |
Mountain View |
State: CA |
| Type of Company: |
Developer of
Personal Finance Software |
| Financial Data As Of: |
7/31/99 |
Assets: $2,328.2 |
Net Income (LTM): $376.5 |
| Acquirer’s Business |
Intuit is the #1
maker of personal finance software. The Company’s small-business
accounting and tax software accounts for about half of sales, but Intuit
also makes the well-known Quicken personal finance and TurboTax tax
filing applications. Intuit offers Internet products and services such
as financial news site Quicken.com, payroll processing, insurance
marketing, and mortgage filing. Intuit sells via retailers and
resellers. About 15% of its sales come from distributor Ingram Micro.
Founder Scott Cook owns about 12% of Intuit. |
|
Transaction Information |
| Status: |
Pending |
| Announcement
Date: |
10/7/99 |
Accounting:
Purchase |
| Completion Date: |
Pending |
Consideration:
Equity |
| Deal Value: |
$370 |
| Price/Earnings |
28.5 |
| Price/Est.
Earnings |
N/A |
| Price/Book Value |
9.73 |
| Comments: |
Intuit will
exchange between .579783 and .8411566 of its shares for each Rock
Financial Share. The swap ratio will be determined by dividing $23 by
Intuit’s 20-trading-day average price prior to the Rock Financial
shareholder’s meeting that will be called to approve the transaction.
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