Intuit Purchases PayCycle

June 3rd, 2009

If Intuit makes PayCycle as fun to use as QuickBooks (cough) people are sure to love it.

Intuit has agreed to buy online payroll provider PayCycle for US$170 million in a move to expand its software-as-a-service offerings for smaller businesses, Intuit said Tuesday.

PayCycle is based in Palo Alto, California, and provides online payroll services to about 85,000 small businesses in the U.S. It was founded in 1999 by two former Intuit employees and says its mission is to “make paper-based payroll obsolete.”

PayCycle already integrates with Intuit’s QuickBooks software. It is also offered as an option with Microsoft’s competing Money software, and it was unclear Tuesday if that will still be the case after Intuit completes its acquisition.

Do they really think they will continue to offer support to Money much longer? Come on…

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