US software house Intuit will acquire a minority interest in Quicken software vendor Reckon in a cash transation worth around $3 million.
Reckon develops, markets and supports the Quicken financial management range of software products under a licensing agreement with Intuit.
The deal, which is subject to approval by shareholders, includes an agreement by Intuit to convert its exclusive contract with Reckon to a 10-year term with annual renewals.
Reckon's forays into e-commerce ventures in Asia last year met with disastrous results for the ASX-listed company. Supplies of its software to the retail channel were also disrupted early this year when it parted ways with distributor Express Data. The company has since outsourced its sales force to Marketing Results.
The deal will give Reckon a much-needed cash injection. It now plans to concentrate on its core markets, Australia and New Zealand.
Intuit will also grant the company direct access to source code, ensuring that future versions of the Australian and New Zealand editions of Intuit products will be released concurrently with those of the US and Canada.
The acquisition will be conducted in two stages: the first of around 12 million shares and the second of around 3.5 million shares, at an issue price of $0.1922 per share.