MOUNTAIN VIEW, Calif. — Personal finance software maker Intuit Inc. said Wednesday it will buy small business payroll processor CBS Employer Services Inc. for $78 million in cash and stock.
Mountain View-based Intuit plans to give its small business customers the option of using the payroll service with its QuickBooks software.
Intuit’s shares rose $2.41 to $39.56 during early trading Wednesday on the Nasdaq Stock Market.
Founded in 1966, Fort Worth, Texas-based CBS Employer started as a small business accountant before it branched into payroll services during the 1980s. The company’s CBS Payroll subsidiary has about 13,000 small business customers.
The deal, expected to close by July 31, will increase Intuit’s annual revenue by more than $30 million, but it isn’t expected to affect the company’s earnings during the first year after the takeover.
CBS Payroll will be blended into Intuit’s existing payroll services, a process that could result in layoffs, Intuit said. The company said it’s still too early to tell how many workers might lose their jobs as it eliminates overlapping operations.
The combined payroll processing center will operate major processing centers in San Bernardino and Reno, Nev.