BY Richard Summerfield
FinTech firm Intuit has agreed to acquire Credit Karma for approximately $7.1bn in cash and stocks.
Intuit intends to use Credit Karma’s assets to create a digital personalised finance assistant, a platform that gives users access to their personal finance information, such as income and credit history, as well as information about financial products and other advice.
Credit Karma has 106 million members in the US, UK and Canada, with 37 million monthly active users. The company generated nearly $1bn in revenue in 2019, up 20 percent from the prior year.
The purchase price will be payable in equal portions of cash and Intuit shares, which are being valued at about $299.73 per share, according to a statement announcing the deal.
“Our mission is to power prosperity around the world with a bold goal of doubling the household savings rate for customers on our platform,” said Sasan Goodarzi, chief executive of Intuit. “We wake up every day trying to help consumers make ends meet. By joining forces with Credit Karma, we can create a personalized financial assistant that will help consumers find the right financial products, put more money in their pockets and provide insights and advice, enabling them to buy the home they’ve always dreamed about, pay for education and take the vacation they’ve always wanted.”
“We started Credit Karma with a goal to build a trusted destination for all consumers, to make financial progress regardless of where they are in life,” said Kenneth Lin, founder and chief executive of Credit Karma. “We saw the opportunity to enrich people’s financial lives through transparency, simplicity and certainty.”
The deal — expected to close in the second half of 2020, subject to regulatory approvals — is the largest in Intuit’s 37-year history and the first significant acquisition announced since Mr Goodarzi took control of the company.
News: Intuit to buy Credit Karma for $7.1 billion in cash-and-stock deal