The California-based Credit Karma provides credit scores, reports and monitoring to its members across the US, the UK and Canada. Intuit, a US-based business and financial software company, has agreed to acquire consumer technology company Credit Karma in a cash-cum-stock deal worth around $7.1bn.
The transaction is expected to create a consumer finance platform that will work as a personalised financial assistant, said the parties. Based in California, Credit Karma provides credit scores, reports and monitoring to its members across the US, the UK and Canada.
Through its consumer technology platform, the company also helps its members to reach their financial goals, enabling them to apply for credit cards, shop for a car, personal, and home loans, file their taxes, and also open savings accounts through its bank partner, MVB Bank.
Founded in 2007, the consumer technology company is claimed to have over 100 million members and had made approximately $1bn in unaudited revenue in 2019.
Credit Karma founder and CEO Kenneth Lin said: “We started Credit Karma with a goal to build a trusted destination for all consumers, to make financial progress regardless of where they are in life.
“We saw the opportunity to enrich people’s financial lives through transparency, simplicity and certainty.”
Intuit is a financial platform company based in California. The company has developed products like TurboTax, QuickBooks, Turbo, and Mint to help consumers, self-employed, and small businesses to enhance their financial lives.
The company said that the addition of Credit Karma to its fold will make it easier for consumers in taking better decisions with their money through the consumer finance platform. The personalised financial assistant by using artificial intelligence is expected to help consumers find suitable financial products, save more money, and get access to actionable insights and advice.
Intuit CEO Sasan Goodarzi said: “There’s a lot of innovation and investment in FinTech, but we don’t see anyone, with our collective capabilities, pursuing a personalized financial assistant to help consumers take control of their financial lives.
“Together with Ken and the Credit Karma team, we’re going to bring together consumers and financial institutions in innovative ways that lower costs for all those involved and level the playing field for consumers regardless of their economic status. We believe we can transform the personal finance industry and power the economy.”
Terms and closing of the Intuit, Credit Karma deal
As per the terms of the deal, the consideration to Credit Karma will be made in equal parts of cash and Intuit’s shares with each of them valued at about $299.73.
Subject to regulatory approvals and meeting of other customary closing conditions, the deal is likely to be closed in the second half of this year.