(Reuters) - Intuit Inc, the maker of tax preparation software TurboTax, said it agreed to buy Demandforce, a software-as-a-service application provider, for $423.5 million in cash.
"Demandforce sits at the sweet spot of Intuit's small- and medium-sized businesses customer base," said Kiran Patel, the executive vice president and general manager of Intuit's Small Business Group.
The acquisition — Intuit's largest ever — is expected to close in May.
Founded in 2003, San Franciso-based Demandforce bundles marketing and communications tools into a Web-based application and targets small local businesses — like salons, auto shops, chiropractors, dentists, and veterinarians.
Demandforce boasts of 35,000 small business clients in the United States and Canada.
The deal is expected to add one to two points to Intuit's revenue growth in fiscal year 2013 and to be neutral to modestly dilutive for earnings per share in fiscal years 2012 and 2013, Intuit said in a statement.
Mountain View, California-based Intuit started operations in 1983 and now has annual revenue of about $4 billion and a market valuation of $17 billion.
Intuit shares were up about 1 percent at $58.00 on Friday on the Nasdaq.
(Reporting by Supantha Mukherjee in Bangalore; Editing by Saumyadeb Chakrabarty and Joyjeet Das)