Sept. 14 (Bloomberg) -- Intuit Inc., the world’s biggest maker of tax-preparation software, agreed to buy Mint.com for $170 million, gaining a free Internet-based service that helps consumers track financial transactions.

Mint.com, started in 2007, competes with Intuit’s Quicken Online service and says more than 1.5 million people use its free site to track their spending. The purchase will cut earnings for the year ending July by 2 cents a share, excluding some costs, Intuit said today in a statement.

The acquisition lets Intuit eliminate a potential threat, said Heather Bellini, an ISI Group analyst in New York. Intuit also is working to lessen its reliance on tax-preparation programs, such as TurboTax. Intuit released a Web-based service this year to help consumers manage health costs and introduced credit-card processing software that works on mobile phones.

“Given Mint.com’s growth in traffic, there’s a defensive element to this,” Bellini said in an e-mail. She has a “neutral” rating on Intuit shares. Intuit “is trying to ensure they own all consumer finance launching points,” Bellini said.

In June, Intuit agreed to buy Paycycle Inc., a Web-based service that small companies use to handle payroll.

Intuit, based in Mountain View, California, rose 2 cents to at $27.86 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have risen 17 percent this year.

Venture Investors

Mint.com, also based in Mountain View, has received more than $17 million in venture funding, according to its Web site. Investors include Shasta Ventures, Benchmark Capital and First Round Capital.

Mint.com looks at consumers’ spending habits and provides a graphical display of expenses by category, such as groceries or entertainment. When a subscriber buys a coffee or movie ticket, the transaction automatically gets categorized on the Web site.

The service also suggests better credit-card or mortgage rates. Mint.com makes money from providing sales leads to financial institutions. In a May 6 interview, Mint.com Chief Executive Officer Aaron Patzer said the company’s goal is to boost sales as much as 10-fold this year.

“This helps us leapfrog user growth by two to three years,” Patzer said in an interview today. “Right now, Mint is all about information, but doesn’t give you the ability to pay bills.” Intuit may eventually allow users to act on the information Mint.com provides, he said.

Intuit said it intends to keep both Mint.com and Quicken Online, a freely available Internet-based version of its accounting software. Patzer will become a general manager at Intuit, the company said.

The transaction won’t have a material effect on earnings in fiscal 2011, Intuit said. The company expects to close the deal in the calendar fourth quarter.

For Related News and Information: On Intuit’s earnings: INTU US <Equity> TCNI ERN BN <GO> On Intuit’s sales by product: INTU US <Equity> PGEO CHART <GO> On earnings growth: INTU US <Equity> EM <GO> On analysts’ ratings INTU US <EQUITY> ANR <GO> On top technology stories: TTOP <GO>

Last Updated: September 14, 2009 16:06 EDT