TurboTax maker Intuit Incorporation, a California-based business, and financial software company is close to purchasing personal-finance portal Credit Karma Incorporation for roughly about US$7 billion in cash and stock.
Assuming that both parties will be in good terms, the acquisition is expected to be announced by the firm as early as Monday. Under the contract, CEO Kenneth Lin will persist in his position and the company would still remain as a standalone business.
Intuit Inc. shares have increased by as much as 14 percent since the beginning of the year, the company earnings in the second quarter will be reported on Monday.
According to people familiar with the matter, the agreement will further push the bookkeeping-software giant into customer finance, both companies will be offering more compendious financial recommendations to clienteles.
If the cash and stock purchase deal does not come to a halt, it will be the largest acquisition that the company has made after its 37 years in the industry.
Intuit Inc. and Credit Karma would be merely the latest deal in the financial-service sector after Wall Street Giant Morgan Stanley has announced taking over online brokerage Main Street E-Trade Financial.
Approximately, over 85 million Americans are using Credit Karma. It provides consumers with a better understanding of their credit scores via credit monitoring, as well as improve their credit scores. Other services included are Data-breach alerts and Tax-filing.
Credit Karma is an American multinational personal finance company, founded in 2007, by Kenneth Lin, Ryan Graciano, and Nichole Mustard. The company is best known as a free credit and financial management platform.
It features Free tax preparation, monitoring of unclaimed property databases and a tool to identify and dispute credit card reports. All of Credit Karma’s services are free to consumers.
Privately Held Credit Karma, earns money through a loan referral commission and credit cards. Two years ago it was valued at about $4 billion in a private share sale.
The WSJ said in a report, Credit Karma has considered selling shares to the public, however, the IPO market recently has been known for its disappointing roll-outs.
Intuit Inc. is behind the making of TurboTax, the company was founded in 1983 by Scott Cook and Tom Proulx in Palo Alto, California. It went public after a decade in 1993. TurboTax is an online software being used by millions of consumers to file taxes.