Intuit to acquire Medfusion for $91M

Intuit has signed a definitive agreement to acquire privately held Medfusion, a Cary, N.C.-based patient-to-provider communications company, in a cash transaction valued at approximately $91 million.

“This transaction expands our software-as-a-service offerings with a solution currently used by more than 30,000 healthcare providers,” said Brad Smith, Intuit CEO and president.
 
Medfusion’s online service allows patients communicate with their providers to schedule appointments, pay bills, request prescription refills, complete medical forms, review lab results and clinical summaries, receive reminders and exchange secure messages for related care and administrative issues, according to Intuit, of Mountain View, Calif.

After the transaction closes, Intuit will build upon its existing Quicken Health for medical billing. The companies plan to combine Intuit's user interface and design with Medfusion's portal offering and bill presentment and payment service.

When the transaction closes, Stephen Malik, Medfusion's founder and CEO, will become a senior vice president and general manager reporting to Smith. Malik will continue to run Medfusion and will lead Intuit's healthcare business from Medfusion's headquarters in North Carolina.

The transaction is expected to close during the fourth quarter of Intuit's fiscal year 2010, which ends July 31, and is subject to customary closing conditions.