Intuit has sold Quicken to H.I.G. Capital. H.I.G. Capital according to Wikipedia has $19 billion of equity capital under management. Just to give you perspective, Quicken in 2015 generated under $51 million in revenue for Intuit. Unfortunately terms of the sale were not disclosed.
If I were willing to make a guestimate, I would guess Quicken sold for around $200–300 million and hope certainly for under $500 million. Especially with a YoY declining revenue base.
With the sale of Quicken, it’s akin to the old house that needs upgrading to modern standards. Quicken needs a new kitchen, bathrooms, central air and upgraded boiler – in other words a complete gutjob. Putting new vinyl siding might make it look nice if H.I.G. is looking for a quick sale, but the issues will shine through when you do an inspection. For at least the past 5–6 years Quicken has been piecemealed together, and this is what led them to where they are now.
I’m glad we know at least at some level the fate of Quicken, but of course new questions pop up. What new functionality will be added if any? What I constantly hear in my head is a song from the band The Who.
“Meet the new boss. Same as the old boss.” – The Who
From CEO on down, many of the existing management and employees will remain at Quicken, though the CEO did promise additional head count, especially for programmers.
Quicken is definitely in need of fresh blood to improve functionality and increase reliability. The question I have is: Was Quicken’s degradation caused by a lack of funding H.I.G. promises to bring on board, or was it simply staleness from within the organization?
What I can say from my discussion with CEO Eric Dunn is Quicken does have a longstanding commitment to maintain the online connectivity with financial firms, and integration with TurboTax. So you have no fear that these features will discontinue any time soon. Worst case, there are competing technologies like Yodlee that could replace Intuit’s infrastructure.
Part of the announcement of the new company was improvements in Quicken for Mac.
“In addition to the investment news today, Quicken is also announcing a new, free budgeting feature for its Quicken 2016 for Mac customers. The next monthly product release will include Quicken’s 12-Month Budget tool, which is the top feature requested by Mac users. The new feature makes it easy for consumers to set a budget, track progress, and analyze “what if” scenarios. It also provides the flexibility to account for monthly and annual expenses, giving customers a flexible, comprehensive view of their spending.”
Eric did state they are committed to improving the Macintosh version to make it more equivalent to the Windows version. So this is good news for Mac users.
When speaking with the CEO, he was tightlipped about other new functionality. I hope the new entity does right with the disfranchised Quicken user base. Otherwise, as I stated previously this will be a slow, long and painful death for Quicken users.
As for me personally, I have moved on from Quicken to Personal Capital. Unless Quicken adds additional functionality that’s missing, I’m not sure if I will switch back. I’m sure the same question remains for other customers who have already left.
Now that we know the buyer of Quicken, what is your take on the matter?