Companies Will Provide a Personal Financial
Assistant to Power Prosperity
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, today announced that it has completed its acquisition of
Credit Karma, Inc., the consumer technology platform with more than
110 million members in the U.S., Canada and U.K. The combined
company creates a new consumer finance platform that will make it
simple for consumers to make better decisions with their money and
take control of their financial lives.
This combination of trusted brands will support customers during
a time in which the challenges of a global pandemic have made their
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, and 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 of
delivering a personal financial assistant to help consumers improve
their lives by finding financial products to increase savings, pay
down debt and access their money faster.
“We’re thrilled to begin our journey together to create a
mobile, personal financial assistant for consumers to help solve
their most pressing financial problems,” said Sasan Goodarzi, CEO
of Intuit. “Together, we will help consumers achieve financial
success with confidence by helping them find the right financial
products, put more money in their pockets, and provide financial
expertise and advice. I personally want to welcome Ken and the
Credit Karma team to the Intuit family. We at Intuit have been fans
of theirs for some time and are ready to start our journey
together.”
“We founded Credit Karma with the goal of helping consumers make
financial progress by giving them the resources and information
they need to take control of their financial health,” said Kenneth
Lin, founder and CEO of Credit Karma. “In Intuit we found a partner
who not only shares this mission and our values but has the
technology and track record to help accelerate our progress so we
can do even more for current and new members. That means the
possibility of delivering on our current product roadmap in months,
instead of what could have taken years. We are excited to hit the
ground running and turn our vision into reality.”
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.
Transaction Details
Intuit has closed its acquisition of Credit Karma for a total
consideration of approximately $3.4 billion in cash and 13.3
million shares of Intuit stock and equity awards with a value of
$4.7 billion. The total consideration includes approximately $300
million of acquired cash. Intuit will also grant approximately $300
million of restricted stock units to Credit Karma employees shortly
after the closing of the transaction. Further transaction details
can be found in the company’s Form 8-K filed with the SEC
today.
Qatalyst Partners served as Intuit’s financial advisor and
Latham & Watkins, LLP as Intuit’s legal advisor. Goldman Sachs
& Co. LLC served as Credit Karma’s financial advisor, with
Skadden, Arps, Slate, Meagher & Flom LLP and Wilson Sonsini
Goodrich & Rosati providing legal counsel to Credit Karma.
Guidance Update Conference Call
Details
Intuit executives will host a conference call to discuss updated
guidance to include Credit Karma for the second quarter and full
year of fiscal 2021 at 1:30 p.m. Pacific time on December 7. To
participate in the call, dial 866-417-5279 in the United States or
409-937-8904 from international locations. No reservation or access
code is needed. The conference call can also be heard live at
http://investors.intuit.com/Events/default.aspx. Prepared remarks
for the call will be available on Intuit’s website after the call
ends.
Replay Information
A replay of this conference call will be available for one week
by calling 855-859-2056, or 404-537-3406 from international
locations. The access code for this call is 1335808. The audio
webcast will remain available on Intuit’s website for one week
after the conference call.
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 the
combined business; expectations regarding the timing and
availability of our and Credit Karma’s offerings; expectations
regarding the impact of our strategic decisions on Intuit’s
business; and expectations regarding the impact of the Credit Karma
acquisition. 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 global 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. The factors that could cause actual
results to differ materially include, without limitation, the
following: our ability to compete successfully; our participation
in the Free File Alliance; potential governmental encroachment in
our tax businesses; our ability to adapt to technological change;
our ability to predict consumer behavior; our reliance on
third-party intellectual property; our ability to protect our
intellectual property rights; any harm to our reputation; risks
associated with acquisition and divestiture activity; the issuance
of equity or incurrence of debt to fund an acquisition; our
cybersecurity incidents (including those affecting the third
parties we rely on); customer concerns about privacy and
cybersecurity incidents; fraudulent activities by third parties
using our offerings; our failure to process transactions
effectively; interruption or failure of our information technology;
our ability to maintain critical third-party business
relationships; our ability to attract and retain talent; any
deficiency in the quality or accuracy of our products (including
the advice given by experts on our platform); any delays in product
launches; difficulties in processing or filing customer tax
submissions; risks associated with international operations;
changes to public policy, laws or regulations affecting our
businesses; litigation in which we are involved; the seasonal
nature of our tax business; changes in tax rates and tax reform
legislation; global economic changes; exposure to credit,
counterparty or other risks in providing capital to businesses;
amortization of acquired intangible assets and impairment charges;
our ability to repay or otherwise comply with the terms of our
outstanding debt; our ability to repurchase shares or distribute
dividends; volatility of our stock price; our ability to
successfully market our offerings risks associated with tax
liabilities or changes in U.S. federal tax laws or interpretations
to which the transaction with Credit Karma or parties thereto are
subject; failure to successfully integrate any new business;
failure to realize anticipated benefits of any combined operations;
unanticipated costs of integrating Credit Karma; the risk that the
conditions imposed in connection with the regulatory approval for
the combined business, including the divestiture of the Credit
Karma Tax business, could adversely affect us and/or the expected
benefits of the combined business; potential impact of 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, and
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. You can locate these reports through our website
at http://investors.intuit.com. Forward-looking statements
represent the judgment of the management of Intuit as of the date
of this presentation. We do not undertake any duty to update any
forward-looking statement or other information in this
presentation.
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version on businesswire.com: https://www.businesswire.com/news/home/20201203005602/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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