Intuit has agreed to buy Credit Karma for $7.1 billion in cash and stock, which would become its largest acquisition ever. Intuit said this week that Credit Karma has nearly $1 billion in revenue, an increase of 20 percent from the prior year,

Credit Karma CEO Kenneth Lin will report to Intuit CEO Sasan Goodarzi with Credit Karma continuing to operate under its own brand. The company, founded in 2007, has 1,300 employees. The deal is expected to close in the second half of calendar 2020. The purchase price will be split evenly between cash and stock.

Goodarzi said the deal  will help consumers by creating a platform in which “We will connect them to experts to help them make better decisions about their money.” The company will match consumers with preapproved offers on consumer loans, home loans and insurance. 

Intuit said it will also help its more than 100 financial institution partners find qualified leaders by providing them metrics such as income and credit history.

Goodarzi outlined three priorities in developing the Credit Karma  business will growing the core business—growing credit card and personal loans. The next priority is developing the vertical market of home and auto loans and insurance. Finally, there is what Goodarzi called emerging verticals, which include providing savings and checking accounts and early access to employee pay.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Monday, 24 February 2020
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