Wednesday 26 February 2020

26 February 2020 - California-based Intuit (NASDAQ: INTU) has agreed to acquire consumer technology platform Credit Karma for approximately USD 7.1bn in cash and stock to advance solutions for personal finance problems of consumers, the company said.

The purchase price for Credit Karma will be payable in equal portions of cash and Intuit common stock, with the shares of Intuit common stock being valued at approximately USD 299.73 per share.

Following the close of the transaction Intuit will issue approximately USD 300m of restricted stock units to Credit Karma employees, which will be expensed over four years.

Intuit expects the cash consideration to be financed through cash and its existing unsecured line of credit.

The transaction is expected to close in the second half of calendar year 2020, subject to receipt of required regulatory approvals and satisfaction or waiver of other customary closing conditions.

Intuit and Credit Karma will combine to make it simple for consumers to make better decisions with their money through a consumer finance platform that works like a personalised financial assistant, helping consumers find the right financial products, put more money in their pockets and have access to actionable insights and advice.

The platform will leverage artificial intelligence and connections to over 100 financial partners.

Intuit is a global financial platform company with products, including TurboTax, QuickBooks, Mint and Turbo, designed to empower consumers, self-employed and small businesses to improve their financial lives.

Credit Karma is a consumer technology company with more than 100m members in the UK, United States and Canada, including almost half of all US millennials.

Qatalyst Partners is serving as Intuit's financial advisor, with Latham and Watkins, LLP serving as legal advisor. Goldman Sachs and Co. LLC is serving as Credit Karma's financial advisor, with Skadden, Arps, Slate, Meagher and Flom LLP and Wilson Sonsini Goodrich and Rosati serving as legal advisors.