Intuit to Acquire Check for $360 Million to Bolster Mobile Tools

May 27, 2014 9:16 am ET

May 27 (Bloomberg) -- Intuit Inc. is buying mobile-bill payments provider Check Inc. for about $360 million, seeking to bolster its services as user gravitate toward smartphones and tablets.

Intuit said it’s paying cash and other considerations for Check and that the deal will close in the fourth fiscal quarter. Check, which raised $24 million in a September funding round, lets users monitor bills and accounts, receive alerts when bills are due or funding is running low.

Check is pursuing a $20 billion market for bill-payment services in the U.S, and aiming to strike deals with services like utilities and phone companies, Chief Executive Officer Guy Goldstein said in September. Check is among a growing number of companies trying to disrupt the market for managing and paying bills online by simplifying the process and focusing on mobile. Other challengers include Doxo Inc., Pitney Bowes Inc.’s Volly, Zumbox Inc. and Intuit’s Mint.com.

Check, based in Palo Alto, California, offers a free smartphone app that lets consumers pay bills, get reminders when payments are due and monitor accounts. The company now makes money by collecting a per-transaction fee from billers like wireless carrier Alltel Corp. and water providers Desert Water Agency and Irvine Ranch Water District. Check also generates revenue by charging consumers for extra services such as same- day delivery of late payments.

Menlo Ventures led the funding round in September, and included participation from Morgenthaler Ventures and Pitango Venture Capital, bringing Check’s total funding to $49 million.