Acquisition Paves the Way to Help Over 100
Million Consumers Save, Pay Down Debt and Get Faster Access to
Money
Intuit (Nasdaq: INTU), proud maker of TurboTax, QuickBooks, and
Mint, with 57 million customers, and Credit Karma, the consumer
technology platform with more than 110 million members in the U.S.,
Canada and the U.K., today announced that they have entered into a
consent decree with the U.S. Department of Justice (DOJ), an
important step in completing their previously announced merger. The
companies also announced that they have entered into an Assurance
of Discontinuance with the New York State Attorney General that,
along with the DOJ action, moves Intuit’s acquisition of Credit
Karma one step closer to closing, subject to the satisfaction of
customary closing conditions.
Intuit and Credit Karma also announced Credit Karma’s agreement
with Square (NYSE: SQ), pursuant to which Credit Karma will divest
its Credit Karma Tax business to Square. The completion of the
transaction with Square is contingent upon the successful closing
of Intuit’s acquisition of Credit Karma, among other customary
closing conditions. As part of the divestiture transaction, Intuit
and Credit Karma have made certain commitments to Square, including
the provision of certain transition services to help ensure a
successful transition of the business.
“We are very excited to reach this important milestone today.
This brings us one step closer to transforming personal finance by
making it simpler for consumers to find the right financial
products, put more money in their pockets, and provide financial
expertise and advice,” said Sasan Goodarzi, CEO of Intuit. “We are
pleased to have cleared this necessary regulatory review with DOJ
and appreciate their careful consideration of this transaction.
Consumers will continue to benefit from the Credit Karma Tax
product as part of Square.”
The combination of Intuit’s and Credit Karma’s trusted brands
will support customers during a time in which the challenges of a
global pandemic have made consumers’ personal finance needs even
more critical. Currently, 62% of consumers are living
paycheck-to-paycheck, 75% of Americans have concerns about their
ability to pay bills and loans, 33% of Americans have lost income
during the pandemic while household debt in the U.S. has reached
$14.3 trillion. These challenges add even greater urgency to
Intuit’s and Credit Karma’s shared goal to help customers improve
their financial lives.
“Today is an exciting milestone for Intuit and Credit Karma.
Together with our trusted brands, customer scale, as well as our
data and AI platforms, we will achieve more than either company
could on its own,” said Kenneth Lin, Founder and CEO of Credit
Karma. “We are pleased to have accomplished our goal of addressing
any potential regulatory hurdle and proud we’ve found a partner for
the Credit Karma Tax business.”
As a result of the combined company’s capabilities and
accelerated innovation, consumers, including the 57M Intuit
customers and 110M Credit Karma members, will quickly see
break-through benefits. Consumers will find the right financial
products including unparalleled offers on credit cards, loans and
insurance. The platform will also help enable them to maximize
their tax refund and connect them to high-yield savings accounts
and checking accounts, providing them faster access to their money.
Consumers will also get access to financial expertise and advice,
actionable insights, tools and live experts to help them better
understand their complete financial picture, make better financial
decisions and build wealth.
About Intuit
Intuit’s mission is to power prosperity around the world. We are
a mission-driven, global financial platform company with products
including TurboTax, QuickBooks, and Mint, designed to empower
consumers, self-employed and small businesses to improve their
financial lives. Our platform and products help customers get more
money with the least amount of work, while giving them complete
confidence in their actions and decisions. Our innovative ecosystem
of financial management solutions serves more than 50 million
customers worldwide. Please visit us for the latest news and
in-depth information about Intuit and its brands and find us on
social.
About Credit Karma
Founded in 2007 by Kenneth Lin, Credit Karma is a consumer
technology company with more than 110 million members in the U.S,
U.K. and Canada, including over half of all U.S. millennials. While
best known for pioneering free credit scores, the company’s members
turn to Credit Karma for everything related to their financial
goals, including identity monitoring, applying for credit cards,
shopping for loans (car, home and personal), insurance, high-yield
savings accounts and now checking accounts through our bank
partner, MVB Bank, Inc., Member FDIC -- all for free. Learn more
about how Credit Karma members are making financial progress on
Instagram, Facebook and Twitter.
Cautions About Forward-looking Statements
This communication contains forward-looking statements within
the meaning of applicable securities laws, including expectations
regarding our current and future products and their impact on
Intuit’s business; expectations regarding availability of our
offerings; expectations regarding the impact of our strategic
decisions on Intuit’s business; and expectations regarding the
timing, completion and impact of the Credit Karma acquisition and
the divestiture of the Credit Karma Tax business. Forward-looking
statements and information usually relate to future events and
anticipated revenues, earnings, cash flows or other aspects of our
operations or operating results. Forward-looking statements are
often identified by the words “believe,” “expect,” “anticipate,”
“plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,”
“will,” “estimate,” “outlook” and similar expressions, including
the negative thereof. The absence of these words, however, does not
mean that the statements are not forward-looking.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause our
actual results to differ materially from the expectations expressed
in the forward-looking statements. These risks and uncertainties
may be amplified by the COVID-19 pandemic, which has caused
significant economic instability and uncertainty. Given these risks
and uncertainties, persons reading this communication are cautioned
not to place any undue reliance on such forward-looking statements,
which speak only as of the date hereof. The factors that could
cause actual results to differ materially include, without
limitation, the following: failure to satisfy any closing
conditions to the proposed acquisition of Credit Karma; risks
associated with tax liabilities or changes in U.S. federal tax laws
or interpretations to which the proposed transaction with Credit
Karma, Inc. or parties thereto are subject; failure to successfully
integrate any new business; failure to realize anticipated benefits
of any combined operations; unanticipated costs of acquiring or
integrating Credit Karma; potential impact of announcement or
consummation of the proposed acquisition on relationships with
third parties, including employees, customers, partners and
competitors; inability to retain key personnel; changes in
legislation or government regulations affecting the acquisition or
the parties; economic, social or political conditions that could
adversely affect the acquisition or the parties; the impact of the
COVID-19 pandemic; and risks associated with assumptions the
parties make in connection with the parties’ critical accounting
estimates and legal proceedings. More details about these and other
risks that may impact our business are included in our Form 10-K
for fiscal 2020, and in our other SEC filings and in the
Registration Statement on Form S-4 and the consent solicitation
statement/prospectus contained therein relating to the proposed
acquisition of Credit Karma, Inc. You can locate these reports
through our website at http://investors.intuit.com. We do not
undertake any duty to update any forward-looking statement or other
information in this communication, except to the extent required by
law.
No Offer or Solicitation
This communication is not intended to and does not constitute an
offer to sell or the solicitation of an offer to subscribe for or
buy or an invitation to purchase or subscribe for any securities or
the solicitation of any vote in any jurisdiction pursuant to the
proposed transactions or otherwise, nor shall there be any sale,
issuance or transfer of securities in any jurisdiction in
contravention of applicable law. No offer of securities shall be
made except by means of a prospectus meeting the requirements of
Section 10 of the Securities Act. Subject to certain exceptions to
be approved by the relevant regulators or certain facts to be
ascertained, the public offer will not be made directly or
indirectly, in or into any jurisdiction where to do so would
constitute a violation of the laws of such jurisdiction, or by use
of the mails or by any means or instrumentality (including without
limitation, facsimile transmission, telephone and the internet) of
interstate or foreign commerce, or any facility of a national
securities exchange, of any such jurisdiction.
Additional Information
Important Additional Information Has Been
Filed with the SEC
Intuit has filed with the SEC a registration statement on Form
S-4, which includes the prospectus of Intuit (the “prospectus”),
and which was declared effective by the SEC on May 8, 2020.
INVESTORS AND SHAREHOLDERS ARE URGED TO CAREFULLY READ THE
PROSPECTUS IN ITS ENTIRETY, AND OTHER RELEVANT DOCUMENTS TO BE
FILED WITH THE SEC, IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT INTUIT,
CREDIT KARMA, INC., THE PROPOSED TRANSACTIONS AND RELATED MATTERS.
Investors and shareholders may obtain free copies of the prospectus
and other documents filed with the SEC by the parties through the
website maintained by the SEC at www.sec.gov. In addition,
investors and shareholders may obtain free copies of the prospectus
and other documents filed with the SEC on Intuit’s website at
http://investors.intuit.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20201125005709/en/
Investors Kim Watkins Intuit Inc. 650-944-3324
kim_watkins@intuit.com
Media Karen Nolan Intuit Inc. 650-944-6619
karen_nolan@intuit.com
Media Emily Donohue Credit Karma 805-260-6401
emily.donohue@creditkarma.com
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