Intuit Finally Reaches A Deal To Acquire Mailchimp

Intuit Officially Acquires Mailchimp for $12 Billion

Intuit, best known for its accounting software for small businesses and self-paying tax software, said it would acquire digital marketing company Mailchimp for $12 billion in a cash-and-stock deal, which would be Intuit’s largest-ever acquisition, and it is expected to close by the end of the second quarter of fiscal year 2022, and the software company said it will finance the deal in cash on hand and through a new loan of between $4.5-5 billion.

Last year, the company also acquired personal finance platform Credit Karma for more than $7 billion.

Intuit had talks with the e-marketing platform, which specializes in marketing for small and medium businesses, earlier this month. Read more [Intuit Company Is In Talks To Acquire Mailchimp], due to the importance of the deal, which will help Intuit add new ideas to its QuickBooks platform that tracks customer spending, as well as coinciding with the benefit of fintech companies such as Intuit as small businesses recover from the recession caused by the pandemic, as the company is currently forecasting profits and revenues that exceed analysts’ estimates for the 2022 fiscal year.

Without any external funding, Mailchimp has started making profits with its promotion to more than 12 million customers around the world, and in 2020, it announced that it had raised $800 million in revenue, representing 20% year-over-year growth, with half of its revenue coming from Outside the United States, and following the transaction, the company will continue to operate in Atlanta, Georgia under its current brand, and it is expected that this transaction will contribute to increasing Intuit’s operating profit during the 2022 fiscal year.

Morgan Stanley was Intuit’s financial advisor with Latham & Watkins as its legal advisor, while Mailchimp advised Qatalyst Partners and King & Spalding.

Related Articles

Back to top button