Quicken Sold Again: The Future of the Fintech Pioneer

Quicken to be Acquired by Aquiline Capital Partners

Approximately five and a half years following its initial acquisition, personal finance software provider Quicken is set to be acquired once more, this time by another private equity firm.

Previous Acquisition and Current Deal

In April 2016, an affiliate of H.I.G. Capital completed the purchase of Quicken from Intuit Inc. for an undisclosed sum. Now, the Menlo Park, California-based Quicken is announcing that Aquiline Capital Partners will acquire a majority stake in the company, again with the financial details remaining confidential.

Quicken’s Performance and Future Plans

TechCrunch secured an exclusive interview with Quicken CEO Eric Dunn, who shared insights into the company’s performance since the last transaction and outlined its future strategies.

Dunn’s long-standing association with the company provides him with a unique perspective on its evolution. He initially joined Intuit, Quicken’s former parent company, as employee number four in 1986, when Quicken was the sole software offering.

Dunn’s History with Quicken and Intuit

During his time at Intuit, he served as CFO during the 1993 IPO and the merger with ChipSoft, now known as TurboTax. As CFO, Dunn also contributed as a software developer on early Quicken versions and was the first VP/general manager of the business.

Growth and Financial Results

Since the H.I.G. acquisition, Quicken has experienced substantial growth. The company currently boasts 2 million active users, a figure Dunn states is “significantly higher” than when it was spun off from Intuit.

While specific revenue numbers were not disclosed, Dunn confirmed the company’s profitability and a 50% increase in annual sales volume over the past five years, representing double-digit annualized growth.

“We maintain strong profitability and have consistently done so since the spinoff,” Dunn stated. “Our revenue performance surpasses anything achieved during the Intuit years, and we’ve successfully modernized and enhanced quality for our customers.”

Customer Satisfaction and Product Improvements

Quicken has also seen a notable improvement in customer satisfaction, with a 25-point gain in Net Promoter Score (NPS) over the last five years. NPS is a key metric for measuring customer loyalty.

H.I.G. Capital, in collaboration with the Quicken management team, focused on enhancing product quality, transitioning Quicken to a cloud platform, and launching the digitally native personal finance app, Simplifi.

H.I.G.’s Perspective

Dunn explained that H.I.G. Capital considered its objectives fulfilled. “They aimed to carve out an asset with significant potential from a parent company that had previously underinvested in it,” he said.

Justin Reyna, managing director at H.I.G. Capital, affirmed that the investment results in Quicken have been “outstanding.”

Quicken as a Pioneer in Fintech

Despite the proliferation of financial technology companies, Dunn asserts that Quicken was, in fact, “the first fintech.”

“Launched in 1983 as Intuit’s only software product, it pioneered the concept of automating personal finances through a software tool designed for desktop use,” he explained.

Future Strategy and Partnerships

Looking ahead, Quicken intends to explore partnerships with other fintech companies while continuing to refine its business model. Acquisitions are not a primary focus at this time.

No Planned Layoffs

The change in ownership will not result in layoffs. Dunn anticipates continued hiring, adding to the existing staff of 150 employees (excluding 250 contracted customer care agents).

The company will prioritize the ongoing modernization of the Quicken product and the expansion of functionality across its web and mobile platforms.

“We will also continue to develop our Simplifi product, which is currently 18 months old,” Dunn added. “While it already offers a robust feature set, there is considerable room for improvement.”

Focus on Integrated Financial Services

A key area of focus will be integrated financial services, enabling seamless money movement between accounts within the product, eliminating the need for external websites.

Aquiline Capital Partners

Aquiline Capital Partners is a New York- and London-based private investment firm managing $6.9 billion in assets. Its president, Vincenzo La Ruffa, is a Quicken user himself.

“Quicken is a trusted resource for millions of customers who rely on it for sound financial management,” La Ruffa stated. “As a long-time Quicken user, I have personally witnessed the dedication of Eric and the team in developing a compelling suite of products and services. I am confident in the company’s growth potential as we collaborate to expand its range of innovative solutions in the personal financial management sector.”

Increased Interest in Personal Finance Fintechs

The personal finance fintech sector has recently attracted significant investment. For instance, Truebill, a personal finance startup, secured $45 million in Series D funding led by Accel in June.