Intuit is buying Credit Karma for $7.1 billion, its biggest acquisition

The deal will mark its largest acquisition by Intuit.

Intuit, a US-based leading financial software company, is intending to acquire Credit Karma — another leading multinational personal financing company for $7.1 billion in cash and stock.

The deal would mark the biggest acquisition in the history of Intuit, which will take place under the current CEO of the company, Sasan Goodarzi, who made this gateway in just a year.

With this acquisition, Intuit and Credit Karma plans to create an advance Consumer Finance Solution acting as a financial assistant that helps individuals to make better monetary decisions. According to Intuit, “Combined companies to create Consumer Finance Platform that works like a personalized financial assistant.”

The goal of such platform is to set a crystal clear approach for consumers to better look at their critical financial profiles and help them take the necessary steps to improve their financial stability. 

The Consumer Finance Platform will strengthen the bond of artificial intelligence and technical capacity between Intuit, Credit Karma, and 100+ financial partners to help consumer:

  • Locate the privilege of financial products by coordinating buyers with pre-endorsed offers on debentures and credit cards with serious interest rates directly for them. 
  • Accommodate with better saving accounts to fill the pockets that give them quick access to their well-deserved money. 
  • Give bits of knowledge and counsel to assist buyers with making better choices for their cash and improve their FICO rating – a measure of consumer credit risk.

On Monday afternoon, Intuit announced its second quarter, which ended Jan. 31, financial report. The report shows an upgrade in revenue with 13%. This increase in the growth gives the hints that the deal is surely going to arm Intuit’s offerings related to the acquisition. 

About the Intuit and Credit Karma

The software fintech giant behind Turbo Tax, Quickbooks and Mint, Intuit, develops and provides a set of services including financial, accounting, and tax preparation to white-collar accountants. The company offers easy to use online financial software for every individual to manage their expenses, taxes, and much more. 

The CEO of Intuit, Goodarazi, regarding the possession says “Our mission is to power prosperity around the world with a bold goal of doubling the household savings rate for customers on our platform. 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.”

The giant financial database that earns a billion-dollars revenue a year, Credit Karma offers digital finance to its 100 million and more members, 37 million of which are the active users. The company has tremendously marked its marketplace by providing remarkable financial services to individuals. 

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Now by getting into the acquisition with Intuit, Credit Karma will help extend the customer base and range of financial services and will also grow Intuit’s business capturing a huge portion of young users that Credit Karma already has in its circle. The personalized financial solution mutually created by Credit Karma and Intuit will give better insights to the individual’s financial status. 

Looking forward to the acquisition, the CEO and the Co-Founder of Credit Karma, Kenneth Lin says “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. We saw the opportunity to enrich people’s financial lives through transparency, simplicity, and certainty.”

After the deal declaration, Goodarzi clears out that Credit Karma will still be a separate entity, and Kenneth Lin will be directly reporting to him about the dealings under the offerings. The acquisition deal is expected to be closed by the second half of 2020. 

Featured image: OneO2

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