Intuit to acquire Credit Karma for $7.1 billion

Credit Karma helps more than 100 million members in the US, Canada and UK manage debt, maximise their savings and access better credit cards and loans

Intuit, the owner of TurboTax, QuickBooks and Mint, has agreed to acquire Credit Karma for $7.1 billion in cash and stock.

Credit Karma helps more than 100 million members in the US, Canada and UK manage debt, maximise their savings and access better credit cards and loans. It has 37 million monthly active users, with 88% engaging on mobile devices.

The personal finance technology company has nearly tripled the growth of its member base over the past five years and created a marketplace comprised of more than 100 financial service providers.

Founded in 2007, Credit Karma recorded nearly $1 billion in unaudited revenue in calendar year 2019, up 20% from the previous year.

Intuit, whose portfolio of products, including TurboTax, QuickBooks, Mint and Turbo, are designed to empower consumers, self-employed and small businesses to improve their financial lives, said the acquisition will further its mission to improve the financial wellbeing of consumers.

Sasan Goodarzi, chief executive officer of Intuit, said: “Our mission is to power prosperity around the world with a bold goal of doubling the household savings rate for customers on our platform. We wake up every day trying to help consumers make ends meet.”

“By joining forces with Credit Karma, we can create a personalised financial assistant that will help consumers find the right financial products, put more money in their pockets and provide insights and advice, enabling them to buy the home they’ve always dreamed about, pay for education and take the vacation they’ve always wanted.”

Kenneth Lin, founder and chief executive officer of Credit Karma, 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.”

Image: Intuit

Mark Dugdale