Intuit To Buy Credit Karma For $7 Bln

(RTTNews) - Intuit Inc. (INTU) Monday announced that it agreed to buy personal-finance portal Credit Karma Inc. for about $7 billion in cash and stock.

The maker of TurboTax and QuickBooks expects the cash consideration to be financed through cash and its existing unsecured line of credit. The deal is expected to close in the second half of 2020.

The acquisition is expected to be neutral to accretive to Intuit's adjusted earnings in the first full fiscal year after the transaction closes.

Credit Karma is a consumer technology platform with more than 100 million members in the U.S., Canada and U.K. The company has nearly $1 billion in unaudited revenue in calendar year 2019, up 20% from the previous year.

"Our mission is to power prosperity around the world with a bold goal of doubling the household savings rate for customers on our platform," said Sasan Goodarzi, CEO of Intuit. "We wake up every day trying to help consumers make ends meet. By joining forces with Credit Karma, we can create a personalized 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."