Why Intuit (INTU) Is Buying Mailchimp For $12 Billion

By Amit Chowdhry ● Sep 14, 2021
  • Intuit (Nasdaq: INTU) announced it has agreed to buy Mailchimp for about $12 billion. These are the details.

Intuit (Nasdaq: INTU) — the company that runs TurboTax, QuickBooks, Mint, and Credit Karma — announced that it has agreed to acquire Mailchimp, a global customer engagement and marketing platform for growing small and mid-market businesses. And the planned acquisition of Mailchimp for about $12 billion in cash and stock advances Intuit’s mission of powering prosperity around the world, and its strategy to become an AI-driven expert platform. Through the acquisition of Mailchimp, Intuit will accelerate two of its previously-shared strategic Big Bets: to become the center of small business growth; and to disrupt the small business mid-market.

Intuit and Mailchimp will continue to deliver on the vision of an end-to-end customer growth platform for small and mid-market businesses, allowing them to get their business online, market businesses, manage customer relationships, benefit from insights and analytics, get paid, access capital, pay employees, optimize cash flow, be organized, and stay compliant. And delivering on the promise to be the single source of truth, SMBs will have the power to combine their customer data from Mailchimp and QuickBooks’ purchase data to get the actionable insights they need to grow and run their businesses with confidence.

Mailchimp brings to Intuit technology at scale along with global customer reach. Launched in Atlanta, GA in 2001, Mailchimp began by offering email marketing solutions and evolved into a global leader in customer engagement and marketing automation fueled by a powerful cutting-edge AI-driven technology stack.

The global customer reach with 13 million total users, 2.4 million monthly active users, and 800,000 paid customers. About 50% of customers are outside of the U.S.

Mailchimp’s data and technology are in the form of 70 billion contacts, and 250+ rich partner integrations. And the company’s AI-powered automation at scale drives 2.2 million daily AI-driven predictions.

Both Intuit and Mailchimp always worked to solve small and mid-market businesses’ biggest challenges. And for two-thirds of small businesses, finding new customers is their biggest obstacle and over 25 percent struggle to retain existing customers, yet almost three-quarters of small businesses have not adopted a customer relationship management solution.

KEY QUOTE:

“We’re focused on powering prosperity around the world for consumers and small businesses. Together, Mailchimp and QuickBooks will help solve small and mid-market businesses’ biggest barriers to growth, getting and retaining customers. Expanding our platform to be at the center of small and mid-market business growth helps them overcome their most important financial challenges. Adding Mailchimp furthers our vision to provide an end-to-end customer growth platform to help our customers grow and run their businesses, putting the power of data in their hands to thrive.”

— Sasan Goodarzi, CEO of Intuit

“Over the past two decades, we’ve vastly expanded and evolved Mailchimp’s platform to help millions of small businesses around the world start and grow. With Intuit, we’ve found a shared passion for empowering small businesses. By joining forces with Intuit, we’ll take our offerings to the next level, leveraging Intuit’s AI-driven expert platform to deliver even better products and services to small businesses. This is an exciting new chapter for Mailchimp, our 1,200+ dedicated employees, and customers.”
— Ben Chestnut, CEO and Co-founder of Mailchimp

“Together, Mailchimp and QuickBooks will become a powerful engine for small and mid-market business customers to get, engage and retain their customers, run their businesses, optimize cash flow, and remain compliant. Today, QuickBooks helps more than 7 million small and mid-market businesses get paid fast, access capital, pay their employees, and grow in an omni-channel world. Mailchimp’s addition will bring speed and velocity to these efforts, with the acceleration of mid-market expansion opportunities and global growth for both brands.”

— Alex Chriss, Executive Vice President and General Manager of the Intuit Small Business and Self-Employed Group