Update: Intuit has officially confirmed the deal
- Financial software company Intuit is reportedly planning to buy Credit Karma for $7.1 billion in cash and stock
Financial software company Intuit is reportedly planning to buy Credit Karma for $7.1 billion in cash and stock, according to sources with The Wall Street Journal. However, the deal is not 100% finalized and could be subject to change.
If the deal happens, then it is expected to help Intuit make a greater impact in the consumer finance industry. Intuit is best known for offering tax filing products like TurboTax and QuickBooks. Intuit is also known for buying Mint.com for $170 million back in 2009.
Back in March 2018, Credit Karma raised $500 million in funding at a $4 billion valuation. Silver Lake provided that investment. And Silver Lake managing partner Mike Bingle had joined the company’s board in connection with the investment.
Credit Karma first became popular by offering free credit reports. And with the ubiquity of mobile devices, the Credit Karma app was especially popular with Millennials. Now Credit Karma offers suggestions for credit cards, loans, taxes, etc. And Credit Karma also alerts users about their data being exploited by hackers.
Credit Karma is expected to operate independently following the deal being closed. And Credit Karma founder and CEO Kenneth Lin will remain as the head of the company.
Plus Credit Karma would benefit from having access to the resources and scalability that Intuit has to offer. Intuit is a public company with a market capitalization of $77.46 billion. It was rumored that Credit Karma was planning to go public last year, but decided to postpone.
Note: If the deal goes through, this article will be updated.