Intuit Drops $7.1B in Stock and Cash to Buy Credit Karma

Companies plan to build 'a personalized financial assistant'
By Bob Cronin,  Newser Staff
Posted Feb 24, 2020 6:47 PM CST
Maker of TurboTax to Buy Credit Karma for $7.1B
A shopper looks at Intuit TurboTax software on display at a California store.   (Peter Barreras/AP Images for Turbo Tax Via AP, File)

Credit Karma, which had been planning an initial public offering by now, has agreed to be taken over by Intuit for $7.1 billion in cash and stock. Intuit's products include TurboTax, Quickbooks and Mint. Credit Karma offers free credit scores and free tax filing services, then sells other financial services to customers and collects referral fees from partners on credit cards and loans, the Verge reports. Credit Karma promises the services it offers "will always be free." About two years ago, per the Wall Street Journal, the San Francisco startup was valued at around $4 billion in a private share sale. It was founded in 2007. The deal would be Intuit's biggest acquisition and strengthen its position in online personal finance.

The two companies are working toward the same goals, per ZDNet, emphasizing personalized financial services and establishing systems for targeted recommendations to consumers. Intuit and Credit Karma will combine on a platform for individualized help. "There's a lot of innovation and investment in FinTech," Intuit's CEO said, "but we don't see anyone, with our collective capabilities, pursuing a personalized financial assistant to help consumers take control of their financial lives." (More mergers and acquisitions stories.)

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