MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)– Intuit (Nasdaq: INTU), proud maker of Turbo, tax, quick Books and Mint, today announced that it has completed its acquisition of Credit Karma, Inc, the consumer technology platform with more than 110 million members in the U.
Why Intuit Buying Credit Karma Was a Problem Intuit’s acquisition of Credit Karma was questioned for potentially creating a tax preparation monopoly, meaning it reduces competition and leaves consumers with fewer tax filing options in what is an $11 billion dollar industry.
You might be asking “What does Credit Karma’s acquisition of Credit Karma mean for Intuit?”
In line with recent rumors, fintech giant Intuit ( NASDAQ: INTU) announced this week that it would be acquiring Credit Karma for $7.1 billion in a cash-and-stock deal that will add a new complementary personal finance platform to its stable of brands, which already includes Turbo, tax, quick Books, and Mint.
How is Intuit financing the Mailchimp and Credit Karma deals?
Intuit factored Credit Karma revenue into its projection for total 2022 sales of $11.05 billion to $11.2 billion, but that was before the Mailchimp purchase. Both deals are being financed through a combination of cash and stock and, in the case of Mailchimp, some new debt.
The total consideration includes approximately $300 million of acquired cash. Intuit will also grant approximately $300 million of restricted stock units to Credit Karma employees shortly after the closing of the transaction.
Is Credit Karma owned by TurboTax?
Intuit, the software giant behind Turbo. Tax, is buying personal finance website Credit Karma for about $7.1 billion in cash and stock. San Francisco-based Credit Karma has garnered more than 100 million users by offering free credit scores since it was founded in 2007.
What’s Intuit’s largest acquisition in its history?
Credit Karma will be Intuit’s largest acquisition in its history. Intuit notes that Credit Karma generated nearly $1 billion in revenue last year, which was up 20% from 2018.
How much money did Credit Karma make last year?
Credit Karma generated almost $1 billion in unaudited revenue last year, up 20% from 2018, Intuit said. Intuit also reported fiscal second-quarter results, with revenue up 13% in the period to $1.7 billion, topping the average analyst estimate of $1.68 billion.
Credit Karma is in the business of providing free credit score tracking—but apparently it’s worth billions to Intuit, which just closed its acquisition of the company in a deal valued at $8.1 billion including cash and stock. That’s up from the original value of $7.1 billion when the deal was initially announced in February.