Partnerships / Acquisitions

Intuit Buys Credit Karma For $7.1B

Credit Karma is now under the umbrella of Intuit.

Intuit closed a deal to buy Credit Karma for a price tag of $7.1 billion on Monday (Feb. 24), according to published reports.

The bookkeeping software titan will now add the personal credit score website to its roster among other names like Quickbooks, TurboTax and more. The company is now worth more than $74 billion.

Consolidation of this kind has been sweeping the financial technology sector as of late, with Intuit's deal just the latest example. The deal lays bare the growing need for financial services groups to accumulate data.

Sasan Goodarzi, Intuit chief executive, told the Financial Times the acquisition would only help them give customers a personalized financial experience that could help them find the right products for their needs. He said the impact would be felt as customers had more money in their pockets and better ways of receiving advice.

The merger was touted as a good thing because it could help both Intuit and Credit Karma boost their total mass of data, which could, in turn, allow both companies the ability to help people in more specific manners.

Credit Karma generated around $1 billion in revenue last year. The company was considering exploring an initial public offering, but after watching other tech companies try that, Credit Karma opted for a sale instead.

Lately, banks, payment processors, brokerage firms and others have been scrambling to acquire startups and companies considered disruptive or innovative in the field. Last year, there was a total of $200 billion in deals similar to Intuit's recent takeover, in which financial technology firms were involved, according to investment bank Financial Technology Partners.

One of those deals involved Fidelity National Information Services' purchase of payment processor Worldpay for around $50 billion. Another saw Fiserv taking over rival First Data for $46 billion. Global Payments spent $27 billion doing an all-stock buyout of TSYS. And this year already, Visa paid $5.3 billion to acquire Plaid, which helps fintech companies connect with customers' bank accounts.

——————————

NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

TRENDING RIGHT NOW