Intuit recently bought Credit Karma for $7 billion. It could also potentially buy Credit Sesame and NerdWallet. Finicity is reportedly worth between $1 and $2 billion, and Credit Sesame could potentially sell for between $500 million and $750 million. The amount that NerdWallet would sell for is unknown.
“We do not comment on speculations or rumors,” an Intuit spokeswoman said.
The volatility of the market, especially since being affected by the coronavirus, could cause a drop in some mergers and acquisitions (M&A) valuations and provide buying opportunities for interested companies.
“There is a lot of money on the sidelines, and I would expect companies to take advantage,” one banker said.
On Monday (March 9), the market saw Intuit’s shares dip 4.3 percent, which is $11.45, to $263.73.
Finicity is potentially an acquisition target because it is a data aggregator, and its API is attractive because it allows two applications to talk to each other. The company has a suite of APIs that operate with outfits like Experian and Ellie Mae to help onboard and authenticate customers.
The company has raised about $80 million in funding, and Experian Ventures is an investor.
Finicity is similar to recent Visa acquisition Plaid, which was bought for $5.3 billion in January. Plaid’s APIs help customers connect bank accounts with finance apps.
Credit Sesame was expected to go public later this year or possibly next, and it’s essentially a smaller version of Credit Karma. It was launched in 2010 and has been profitable since 2017, according to the company.
NerdWallet was founded in 2009 and has the mission of helping its customers make better personal decisions, which includes help with choosing a credit card, a personal loan or a mortgage for a property. It has raised $105 million through four funding rounds.