Intuit Inc. and InsWeb Corp. announced on Nov. 27 they have reached a set of definitive agreements to allow InsWeb to acquire certain assets in exchange for an equity stake. Under the agreements, InsWeb will acquire selected assets of Intuit’s QuickenInsurance business. In exchange, Intuit will receive a 16.6 percent post-closing equity stake in InsWeb. The equity value of the transaction is expected to be approximately $14 million. In addition, under a separate five-year agreement, InsWeb will become the exclusive consumer insurance aggregator for Quicken. com and QuickenInsurance websites and certain consumer desktop products. In exchange, Intuit will share in associated revenues, which are subject to certain minimums. Intuit plans to cease the online operations of its QuickenInsurance business, which are operated by its Intuit Insurance Services Inc. subsidiary in Alexandria, Va. Approximately 75 Intuit employees will be impacted by this closing.
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