Jason Nazar has spent the last six years building Docstoc Inc. from a database of online document templates into a one-stop shop for small businesses. Now his company is being acquired by one of the largest firms in the small-business space.
The Santa Monica company announced last week that it had agreed to be purchased by financial and tax software developer Intuit Inc. Terms of the deal, which is expected to close by the end of January, were not disclosed.
Nazar, Docstoc’s chief executive, will continue to lead the 50-person firm, which will remain local.
Nazar said Intuit, a Mountain View company that focuses primarily on small-business customers, would allow Docstoc to maintain its focus.
“They’ve got the same vision for us about how to transform small businesses for the better,” he said. “We’re going to be able to do some exciting things together.”
Nazar co-founded Docstoc in 2007 as an online database where small-business owners and independent contractors could download basic document templates, such as nondisclosure agreements or freelancer contracts.
Over the years, the company has expanded its services by adding instructional videos, product and vendor review sites and business licensing services. It made its first acquisition in August when it scooped up New York recommendation site BestVendor. Today, Docstoc claims more than 40 million registered members and 16 million monthly visitors.
Alex Chriss, a vice president and general manager in Intuit’s small-business division, said the Docstoc acquisition would broaden the software company’s customer base to include solo entrepreneurs and independent contractors.
“As we strive to be the operating system behind small-business success, we are looking for solutions and teams that best serve small businesses, and Docstoc stood out as a clear leader,” he said in a statement.
Docstoc has raised $4 million in funding from Santa Monica venture firm Rustic Canyon Partners and local angel investors that include LowerMyBills founder Matt Coffin. Business Journal Publisher and Chief Executive Matt Toledo is a shareholder and adviser to the company.
A person close to the deal said Intuit was one of a number of firms that had been circling the company in recent months. Intuit’s offer was far and away the richest, the source said, implying it was nearly double what most had been expecting the company to sell for.
Nazar would not comment on the price other than to say everyone involved was happy with the deal.
“It was a really good deal for all the shareholders,” he said. “It’s going to be a big win for us.”
Staff reporter Tom Dotan contributed to this report.
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