The company announced Thursday (December 3) that it has completed its $ 8.1 billion acquisition of Credit Karma, which offers credit ratings and reports to consumers and has 110 million “members.” Intuit first announced plans to buy Credit Karma in February, in an effort to help TurboTax, one of its flagship products, deepens the field of consumer credit.
However, the prospect of a deal that would unite TurboTax, a tax preparation powerhouse, with Credit Karma’s own consumer tax firm, has raised antitrust concerns from federal regulators.
The US Department of Justice gave the green light last month on the condition that Credit Karma sell its tax business, with Square Inc. committing to purchase the unit. Intuit paid “approximately $ 3.4 billion in cash and 13.3 million shares of Intuit valued at $ 4.7 billion” to acquire Credit Karma, the companies said in a statement. Press release.
This number includes “approximately $ 300 million in acquired cash.” Additionally, Intuit said it will also “grant approximately $ 300 million in restricted stock units to Credit Karma employees shortly after the transaction closes.”
Sasan goodarzi, CEO of Intuit, said the acquisition of Credit Karma will help fuel efforts to “create a mobile personal financial assistant for consumers.”
“We will help consumers be financially successful… by helping them find the right financial products, put more money in their pockets and provide financial advice and expertise,” he added.
The two companies also highlighted the deal’s consumer benefits from a transaction that had raised competition concerns among federal regulators.
The acquisition will lead to “unparalleled offerings on credit cards, loans and insurance,” while the “platform” will allow customers to “maximize their tax refund and connect them to corporate accounts. savings and high yield checking accounts, ”according to the press release. turned off by Intuit and Credit Karma.