Intuit's Quicken and Turbo Tax products are associated largely with consumers, but the company has been a hit with SMBs as well. A Yankee Group report from the spring of 2006 found that its QuickBooks program was by far the top accounting application among small and very small businesses, and that Intuit was making inroads into the mid-sized business market as well.
Intuit's $170 million purchase of Homestead Technologies should help it broaden its appeal to SMBs by offering services other than financial management, reports InformationWeek. Intuit hopes that SMBs' interest in establishing an online presence will create interest for the Web site creation and online commerce capabilities it will gain with the Homestead buy.
Intuit knows a little something about effective Web sites, as evidenced by its recent selection by research firm Compass Intelligence as one of 10 vendors that provide the best online experience for SMBs.
"Homestead helps us solve one of small businesses' highest priorities -- attracting customers," says the VP of Intuit's small business group, in a statement. Homestead will become part of that group following the acquisition, which is expected to close in 2008's first quarter.