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Intuit, the accounting and tax software company behind QuickBooks, TurboTax and Mint, agreed to buy CreditKarma for $7.1 billion in cash and stock, in a highly anticipated announcement.
The deal brings together two of the nation’s leading personal finance companies for consumers and in certain cases freelancers and small businesses, as millions of people use their products to manage their personal finances or emerging businesses, manage their credit profiles or complete their taxes.
The deal is expected to be neutral to accretive during the first full fiscal year after the transaction closes.
Intuit CEO Sasan Goodarzi said the combination fits directly with Intuit’s mission and long term strategy, which is to power prosperity around the world. He said the company’s bold goal for 2025 is to double the household savings rate for customers on the Intuit platform.
“This acquisition is a giant step forward in achieving that goal and significantly accelerates execution of our big bet to unlock smart money decisions,” Goodarzi, said on a conference call Monday afternoon. “This big bet is aimed at helping consumers address the personal finance problem they face today — helping them reduce debt, maximize savings and put more money in their pockets.”
He mentioned household debt in the U.S. reaching $14.1 trillion and said 23 million consumers relied on at least one payday loan in 2018 to get faster access to cash. He said consumers could unlock billions in potential savings if they had better understanding of their personal finance.
He said the platform will provide consumers with transparent access to their personal financial information to help them improve their financial health. He said the combination would help connect consumers to pre-approved offers on personal loans, home loans, credit cards and insurance.