Intuit Buys Lettuce - Analyst Blog

Business and financial management solutions provider Intuit Inc. INTU recently acquired Lettuce, an online inventory and order management app. Although the financial details of the deal were not divulged, according to Pando Daily the acquisition was worth $30 million. 

 

Lettuce solutions are intended to aid small businesses in streamlining, simplifying and managing orders across various sales channels. Lettuce is a cloud-based platform that offers a wide range of inventory and order management solutions that help to solve problems faster, thereby providing instant accounting solutions for small businesses.

 

The acquisition will provide improved solutions for the management and storage of documents and also meet other needs of a small business. Additionally, the synergies from the acquisition will help Intuit to gain traction in the small & medium business SMB segment. These new offerings are expected to increase Intuit's customer base going forward.

 

With the acquisition of Lettuce, Intuit will be able to build a more comprehensive platform for entrepreneurs as Lettuce's capabilities will boost Intuit's own platform.

 

Intuit is a leading provider of business and financial management solutions to SMBs, accounting professionals and financial institutions.

 

We are positive about Intuit's growing SMB exposure and believe that all its acquisitions in the space, including Demandforce, Prestwick Services, LLC and Docstoc will continue to provide support to the segment. However, competition from leading payroll solution provider Paychex Inc. PAYX and H&R Block, Inc. HRB, seasonality of Intuit's tax business and the ongoing uncertainty in the economy concern us.

 

Currently, Intuit has a Zacks Rank #2 (Buy). Apart from Intuit, investors can also look at stocks like Rambus Inc. RMBS carrying a Zacks Rank #1 (Strong Buy).